Commerzbank analysts share a brief assessment of the latest inflation data from the Eurozone.

Inflation rate is likely to fall further

"In the euro area, the inflation rate's downward slide was interrupted in April. As the sharp fall in energy prices in April 2022 dropped from the year-on-year comparison, the inflation rate rose again slightly from 6.9% to 7.0%."

"In the coming months, the inflation rate is likely to fall further, however, especially since the inflationary impulse from food prices is also easing. Underlying inflation has not increased further. The inflation rate excluding the strongly fluctuating prices of energy, food, alcohol and tobacco declined slightly from 5.7% to a still very high 5.6%. In this respect, the pressure on the ECB to raise key interest rates further remains high."