BRUSSELS, April 30 (Xinhua) -- Euro area annual inflation is expected to rise to 3.0 percent in April, up from 2.6 percent in March, while economic growth remained weak in the first quarter, Eurostat said on Thursday.
According to a flash estimate from the European Union's statistical office, services inflation stood at 3.0 percent, down from 3.2 percent in March. Food, alcohol and tobacco prices rose by 2.5 percent, compared with 2.4 percent a month earlier, while non-energy industrial goods increased by 0.8 percent, up from 0.5 percent in March.
Among major euro area economies, inflation stood at 2.9 percent in Germany, 2.5 percent in France, 2.9 percent in Italy and 3.5 percent in Spain in April.
Compared with the same quarter of 2025, GDP rose by 0.8 percent in the euro area and by 1.0 percent in the EU in the first quarter of 2026, down from annual growth of 1.3 percent and 1.4 percent respectively in the previous quarter.
By country, Germany, the EU's largest economy, recorded quarter-on-quarter GDP growth of 0.3 percent, while France saw zero growth. Spain and Italy expanded by 0.6 percent and 0.2 percent respectively. Ireland's GDP contracted by 2.0 percent, while Lithuania and Sweden shrank by 0.4 percent and 0.2 percent respectively.
Analysts said the data pointed to mounting stagflationary pressure in the euro area, with energy-driven inflation rising while growth momentum remained weak.
Peter Vanden Houte, chief economist for Belgium, Luxembourg and the eurozone at ING, said higher energy prices were the main factor behind the April inflation increase. He warned that inflation could move closer to 4 percent in the coming months if energy prices remain elevated and second-round effects emerge.
More recent sentiment indicators, including purchasing managers' index readings and European Commission economic sentiment indicators, suggest the second quarter started on a weaker footing, he added.
The ECB noted in a press release on Thursday that the war in the Middle East is driving up inflation and weighing on economic sentiment. "The Governing Council remains well positioned to navigate the current uncertainty," it said. ■
