| Actual | Previous | |
| Month over Month | 1.0% | 1.0% |
| Year over Year | 2.2% | 1.7% |
| HICP - M/M | 1.2% | 1.1% |
| HICP - Y/Y | 2.5% | 2.0% |
Highlights
Consumer prices are expected to rise 1.0 percent month-on-month, and 2.2 percent year-on-year in April, according to preliminary figures released today. In March, prices were also up 1.0 percent on the month while up 1.7 percent on a yearly comparison.
It comes as no surprise with the conflict in the Middle East that energy prices rose 14.2 percent from a year ago after a 7.4 percent gain in March.
Food price gains moderated somewhat in April, rising 1.3 percent from the same period a year ago after a 1.8 percent gain the month before. Prices for manufactured goods fell 0.6 percent from April of last year while services prices rose 1.9 percent.
The Harmonized Index (HICP) used to align inflation concepts across European economies is seeing rising 1.2 percent month-on-month and 2.5 percent year-on-year in April.
These results and those for other countries are showing in stark relief the effects of the conflict in the Middle East. This will dampen consumer demand as higher energy costs eat into discretionary income. They will also be on the radar at the European Central Bank as the annual rate is now exceeding the upper limit of the bank’s target range. Slowing economies and rising inflation will put the ECB in a difficult position of fighting potential stagflation.