Eurozone inflation broke a record in the 6th month

According to the data of the European Statistical Office, the consumer price index (CPI) in the euro area increased by 0.6 percent on a monthly basis in April. The median estimate of economists surveyed by Bloomberg was 0.5 percent. On an annual basis, it increased from 7.4 percent to 7.5 percent. Thus, inflation rose to a record level for 6 months in a row.

Core CPI rose to 3.5 percent year-on-year in April. The negative effects of the ongoing war in Ukraine on Europe's energy supply and the increase in energy prices triggered inflation. This week, Russian energy company Gazprom decided to stop gas flow to 2 EU countries because they did not pay in rubles.

It remains to be seen what action the European Central Bank will take in the face of the rise in inflation. ECB Vice President Luis de Guindos stated yesterday that regional inflation is close to its peak. The bank expects price pressures to ease in the second half of the year.

According to the data released today, the regional economy grew by 5 percent in the first quarter, in line with the annual forecasts. The economy grew 0.2 percent compared to the previous quarter. The expectation was 0.2 percent.