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The rise in food moderates only to 13.5% and continues to put pressure on the CPI in April

Date: February 24, 2024 Time: 07:59:10

The rise in food, which rose an average of 13.5% in the Eurozone last April, continued to put pressure on inflation, whose interannual rate rose one tenth to stand at 7%, thus breaking with four consecutive months in which It was moderating. It was, in fact, the group that contributed the most to the rise in the shopping cart last month. The data made public this Wednesday by Eurostat, the community statistics office, confirm that fresh food became more expensive by 10%, almost five points less than in March, while the rise in processed products was 14.6 %.

In April, energy became more expensive again (2.4% compared to the 0.9% drop registered the previous month), while the prices of services increased by 5.2% year-on-year, one tenth more, in full swing of tourism. The reduction in production costs via raw materials and transport -in relation to the same month a year ago- resulted in industrial goods rising by 6.2%, four tenths less than in March.

Something more positive has also been the evolution of the base, which excludes its computation of the prices of energy and fresh food as they are more volatile. This rate fell one tenth to 5.6%, a level that still jeopardizes the monetary policy of the European Central Bank (ECB) because it alludes to more structural pressures on prices. The entity, which raised the reference interest rates to 3.75% in its last meeting, has already detected that the maximum impact of the rise in the price of money on inflation will occur next year due to the lag that exists in the transmission of monetary policy.

Meanwhile, investment banks such as US-based Goldman Sachs are warning investors that the euro region faces a decade in which equilibrium rates will be higher, government spending will remain high and price containment it will continue to be a headache for governments and for the issuer itself.

In the European Union as a whole, the escalation of prices moderated last month when the annual CPI rate went from 8.3 to 8.1% in April, thus accumulating five consecutive months of relief. Among the 27, inflation was more moderate in Luxembourg (2.7%), Belgium (3.3%) and Spain (3.8%), while the highest annual rates were in Hungary (24.5%) , Latvia (15%) and the Czech Republic (14.3%), whose economies started from a higher level of exposure to Russia (especially in energy terms) already before the invasion of Ukraine took place a little over a year ago. anus.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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