Eurozone inflation surged to 3% in April, prompting ECB policymakers to pledge further tightening to meet the 2% target.
The European Central Bank will take necessary steps to curb inflation after eurozone prices rose to 3% in April, up from 2.6% in March. The increase follows energy market disruptions linked to the Middle East conflict, pushing inflation above the ECB’s 2% target.
The ECB held rates at 2% last month, awaiting more data on wage growth and inflation expectations. Markets now price in at least 50 basis points of tightening by year-end, with a June hike seen as likely. Germany’s 10-year Bund yield has climbed 32 basis points since the conflict escalated.
Policymakers warned of layered economic shocks, with oil price volatility complicating the ECB’s baseline scenario. The bank remains prepared to act decisively to anchor inflation expectations.