FRANKFURT – Eurozone progress slowed within the first quarter whereas inflation hit a contemporary file excessive in April, knowledge launched by the EU statistics company confirmed Friday, stoking fears of stagflation.
Economic progress slowed to 0.2 % on the quarter from 0.3 % within the last three months of final 12 months. On the 12 months, eurozone progress was up 5.0 %.
Looking forward, uncertainty attributable to the battle in Ukraine, which began towards the tip of the primary quarter, in addition to surging inflation are anticipated to additional weigh on progress.
Inflation accelerated additional to 7.5 % in April from 7.4 % within the earlier month. High costs proceed to be pushed primarily by vitality prices, which had been up 38 % on the 12 months. Core inflation, which excludes the unstable elements of meals and vitality, accelerated from 3.2 % to three.9 % — suggesting that prime costs have gotten extra entrenched.