Eurozone inflation remained steady at 2.4% in April despite a slight rise in core inflation to 2.7%. Meanwhile, the economy rebounded with 0.3% growth in the first quarter, ending a brief recession in the second half of last year. Economists expect the European Central Bank to cut interest rates in June to prevent an economic slowdown, but the pace of easing remains uncertain due to firmer core inflation and ongoing risks.
Inflation in the UK slightly eased from 3.4% to 3.2% in March, but it's still higher than expected. The core inflation rate, which excludes energy and food, was 4.2%, higher than the 4.1% forecast. This has led many investors to believe that inflation will take longer to fall than expected, and that the first interest rate cut by the Bank of England may happen later than June, as previously anticipated.
Inflation in the euro zone has slightly decreased to 2.4%. This has led to expectations that the European Central Bank will begin reducing interest rates in June. While some sectors remain inflationary, overall price pressures have eased. A low unemployment rate and the recent messaging of ECB officials support the likelihood of rate cuts in the near future.
