Inflation in the Eurozone Returns to 3.0% in April, Driven by Energy Rebound

Energy Drives Acceleration, but Services Remain the Top Contributor

The main signal of the month comes from energy. Its annual rate reached +10.8% in April, compared to +5.1% in March, with a monthly increase of 3.0%. This rebound, linked to the conflict in Iran and the surge in oil prices, explains a large part of the recent acceleration in the overall index.

However, in terms of contribution level, services remain the leading driver of annual inflation at this stage. Eurostat attributes 1.38 percentage points of contribution to eurozone inflation from services, ahead of energy, at 0.99 points. Food, alcohol, and tobacco contribute 0.46 points, while non-energy industrial goods contribute 0.20 points.

A More Moderate Underlying Inflation

The overall increase does not mean that all components are accelerating at the same pace. The index excluding energy stands at 2.2% in April, compared to 2.3% in March. The index excluding energy, food, alcohol, and tobacco is also at 2.2%, down from 2.3% the previous month.

This distinction is important: the overall figure returns clearly above 3%, but unsurprisingly, the most visible pressure mainly comes from energy. Services continue to weigh heavily on total inflation, even though their annual rate returns to 3.0%, after being 3.3% in March.

Significant Disparities Among Member States

Disparities remain significant within the European Union. Sweden has the lowest annual rate at 0.5%, followed by Denmark at 1.2%, and the Czech Republic at 2.1%. On the opposite end, Romania records the highest rate at 9.5%, followed by Bulgaria at 6.0%, and Croatia at 5.4%.

Compared to March, the annual inflation decreased in five member states, remained stable in one, and increased in twenty-one. This geographical spread of the rise gives the April publication a broader scope than just an isolated effect on a few countries.

France, Germany, Italy, Spain: Major Economies Diverge

Among the main economies of the eurozone, Germany reports an annual inflation rate of 2.9% in April. France remains lower at 2.5%, while Italy stands at 2.8%. Spain is above the eurozone average, with a rate of 3.5%.

These discrepancies highlight that European inflation cannot be summarized by a single figure. The eurozone average conceals different national situations, related to price structures, the weight of energy, and specific consumption dynamics in each country.