Eurozone core CPI jumps to 2.7% as services inflation accelerates

Eurozone headline CPI held regular at 2.2% yoy in April, barely above expectations of two.1% yoy. CPI core, which excludes power, meals, alcohol & tobacco, surged sharply from 2.4% yoy to 2.7% yoy, surpassing the forecast of two.5%.

The acceleration in providers inflation to three.9% from 3.5% drove a lot of the upside shock, highlighting persistent home worth pressures. In the meantime, power costs fell extra steeply at -3.5%, and non-energy industrial items inflation was steady at 0.6%.