Inflation across the European Union rose to 7% in April, according to preliminary data from Eurostat.
The main inflation gauge in Europe came in at 7% for April after it fell to 6.9% in March of this year.
At the same time, core inflation, which excludes volatile food and energy prices, declined to 5.6% in April from 5.7% in March.
Analysts polled by the Reuters News Agency had forecast a headline inflation rate of 7% and core inflation reading of 5.7% for April.
The latest data shows that inflation remains significantly above the European Central Bank’s (ECB) annualized 2% target, raising expectations for further interest rate hikes.
Since July of last year, the ECB has raised its key interest rate from -0.5% to 3%.
The latest inflation data comes days before the ECB is expected to announce its latest interest rate decision. Economists are debating whether the central bank will hike by 50 or 25 basis points at its meeting on May 4.
The European Union’s economy grew by 0.1% in this year’s first quarter, according to preliminary data. That was slower than economists and policy officials had expected.
