Europe’s inflation inches up ahead of interest rate decision

Eurozone’s consumer prices in April rose 7% YoY, according to Eurostat. Though food prices fell marginally, energy prices rose at a modest pace of 2.5%. Core inflation, which excludes food and fuel, slowed down a bit to 5.6%, however, analysts believe the rise in inflation will pressurise the European Central Bank (ECB) to continue rate hikes. The ECB’s meeting on Thursday in Frankfurt could end up with a 25 basis point or 50 basis point hike though an increase of 25 basis points is more likely.