The focus: Inflation commutes between goals and challenges

The focus: Inflation commutes between goals and challenges

Belgien, Land - The inflation rates in the euro zone have shown a significant decline since autumn 2022. While the values ​​in 2022 were temporarily over 10%, the current inflation rate in the euro area is now 2.2%. This development is part of the efforts of the European Central Bank (ECB) to reduce inflation pressure.

An essential factor for the current situation is the persistently high prices in the service sector, while food inflation remains with about 3% in food and almost 5% for unprocessed foods above the target area. The Bundesbank also found that in April 2025 the inflation rate in Germany is reflected with 2.2% from the harmonized consumer price index (HICP). The prices for services, especially in the travel area, have increased strongly and represent a significant factor in influence on inflation development. Bundesbank Complement 3.1% lies.

Influence of external factors on inflation

according to FAZ could potentially the inflation in Influence euro room. The exchange rate, global economic growth and trade flows play a decisive role. Inflation remains near the target value of 2%in the short term, but the US tariffs could have noticeable effects in the long term. In particular, the high interest rates in the United States could temporarily boost inflation in the euro area, but in the medium term.

In addition, the ECB signals that it may have to actively react to economic shocks due to increasing wages that are influenced by high unemployment and lack of work. In Belgium, wages are coupled to inflation, which further tightens the situation. The need to find a middle ground in interest rate policy is a major challenge for the ECB. destatis explains that the harmonized consumer price index (HVPI)) Present price stability in the euro zone.