Lates News

Riccardo Marcelli Fabiani, senior economist at the Oxford Economics Research Institute, said that the rise in core inflation in the eurozone in April should not cause concerns for European Central Bank policymakers, as the temporary nature of the increase in service sector inflation. The core inflation rate rose from 2.4% to 2.7%, while the service sector inflation rate rose from 3.5% to 3.9%, in part due to the timing of Easter this year. However, in a report, he stated that falling oil prices and a stronger euro would drag down energy inflation and lead to a decrease in production inputs and import prices. At the same time, the impact of demand will lower core inflation and accelerate the slowdown in wage growth. He suggested that this cooling trend in inflation could lead the European Central Bank to cut interest rates at the June meeting and then maintain them at a constant level.