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May 2, 2025

Why Eurozone Inflation Remains High Despite Economic Challenges

Eurozone inflation stubbornly stayed slightly above the European Central Bank’s 2 percent target in April. This leads to rising concerns as underlying price pressures exceeded expectations. Some policymakers at the ECB may feel the heat as they consider interest rate options amidst a global trade war that could justify rate cuts. With a volatile economic landscape, the balance between maintaining inflation control and stimulating growth remains precarious. The ongoing tension raises questions about future monetary policy decisions and their implications for the Eurozone economy.

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