April’s Eurozone HICP inflation hits 7%, exceeds 6.9% forecast

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Updated: May 2, 2023, 14:22 UTC

The cost of goods and services in the Eurozone went up by 7% compared to last year, as measured by the Harmonized Index of Consumer Prices (HICP), in April.

Highlights

Eurozone inflation reaches 7% in April 2023
Food, alcohol, and tobacco to have highest annual rate
Non-energy industrial goods and services to see slight decreases

Overview

The EU’s statistical office, Eurostat, issued a flash estimate indicating that Euro area annual inflation would slightly rise. In April 2023, it is projected to reach 7%, compared to the 6.9% recorded in March.

The statistical office also revealed the main components of Euro area inflation, with food, alcohol & tobacco predicted to have the highest annual rate in April (13.6%), followed by non-energy industrial goods (6.2%), services (5.2%) and energy (2.5%).

When compared to the previous month, food, alcohol & tobacco and non-energy industrial goods are expected to see a slight decrease, while services and energy are expected to see a slight increase.

The news may impact financial markets. It suggests the ECB might increase interest rates to control inflation.

Additionally, the rise in inflation is likely to affect consumer confidence, as higher prices could lead to a decrease in purchasing power, which could in turn impact the overall economic outlook for the Eurozone.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James Hyerczykauthor

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.