In April, for the first time in five months, Eurozone inflation increased, rising to 7%, according to new data from the European statistics office on Wednesday, confirming preliminary data released earlier.

According to Eurostat, consumer prices rose from 6.9% in March, due to higher services and energy costs offsetting a reduction in the rate of food price increases.

Inflation in services, which is primarily attributable to labor costs, increased to 5.2% for April, up from 5.1% in March. Energy prices increased again, after declining slightly in March. Food, alcohol, and tobacco all increased by 2.75% last month, but were down from the 3.12% increases of March.

The report noted that core inflation, which excludes the more volatile food and energy prices, reduced to 7.3% from 7.5%, while the even more narrow measure which further excludes alcohol and tobacco, dropped from 5.7% to 5.6%.

According to Eurostat, Latvia continued to suffer from the highest inflation, at 15%, followed by Slovakia, Lithuania, and Estonia, which were all battling double-digit inflation within the 20-member Eurozone.

For almost two years, inflation throughout the Eurozone has been over the European Central Bank’s 2% target rate, with the central bank repeatedly increasing borrowing rates since July of last year in an effort to tackle the double-digit inflation.

Last week the ECB once again hiked its key rate to 3.25%, and indicated there will be another rate hike at its next meeting in June.

Verified by MonsterInsights