Emre Yumlu 
According to the latest data published by Eurostat, the annual inflation rate in the euro area remained stable at 2.2% in April 2025. This rate is the same as in March 2025 and marks a slight decrease compared to 2.4% a year earlier.
Across the European Union, the annual inflation rate dropped from 2.5% to 2.4%. In April 2024, this rate stood at 2.6%, indicating a gradual slowdown in inflation throughout the EU.
Lowest Inflation in France
The lowest annual inflation rates were observed in France (0.9%), Cyprus (1.4%), and Denmark (1.5%). The price stability in these countries is often linked to structural reforms, especially in the food and energy sectors.
In contrast, the highest inflation rates were recorded in Romania (4.9%), Estonia (4.4%), and Hungary (4.2%). This situation may be due to rising service sector prices in these countries.
Mixed Picture Among Member States
According to the April 2025 data, the inflation rate fell in 13 EU Member States, rose in 11, and remained unchanged in 3. This indicates that economic recovery across Europe remains fragile and varies significantly between countries.
Main Contributors to Inflation
According to Eurostat data, services made the largest contribution to annual inflation in the euro area, adding +1.80 percentage points. This was followed by food, alcohol and tobacco (+0.57 pp), while energy prices contributed negatively with -0.35 pp.
Other items, such as non-energy industrial goods, contributed a limited +0.15 pp to inflation. This shows that falling energy prices helped balance overall inflation, although price increases in the services sector continued to push it upwards.
ECB Moving Closer to Its Target
The European Central Bank’s (ECB) long-term inflation target of 2% is now within reach. While the decline in energy prices makes it possible to achieve this goal, service sector pressures are still keeping inflation alive.
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