MNI BRIEF: EZ Headline Inflation Unchanged, Services Higher

Euro area headline inflation was unchanged at 2.2% on a flash reading in April,  Eurostat data showed on Friday.

While market analysts had expected a modest deceleration to 2.1% y/y, a rise in services infaltion to 3.9% from 3.4% in March helped keep the headline rate unchanged. Core inflation also rose, to 2.7% y/y.

The ECB will watch the data closely, although the late Easter holiday in 2025 may have skewed the services and core data somewhat. However, there will be some concern amongst policymakers as they await updated inflation projections at the June policy meeting. (See MNI SOURCES: ECB Heads For June Cut, But Debate To Be Lively )