Economists: The rise in core inflation rates in the Eurozone has not changed the trend of cooling inflation.

Riccardo Marcelli Fabiani, senior economist at the Oxford Economics Research Institute, stated that the rise in core inflation in the eurozone in April should not cause concern for European Central Bank policymakers, as the increase in service sector inflation is temporary. The core inflation rate increased from 2.4% to 2.7%, while the service sector inflation rate rose from 3.5% to 3.9%, partly due to the timing of Easter this year. However, he noted in a report that falling oil prices and a stronger euro will drag down energy inflation, leading to a decrease in production input and import prices. At the same time, the impact on demand will push down core inflation and accelerate the slowdown in wage growth. He suggested that this cooling trend in inflation means that the European Central Bank may cut interest rates at the meeting in June, and then keep rates unchanged.