KOF Monetary Policy Communicator for the Euro Area, April 2025
The KOF MPC figure for 17 April 2025 is -0.18. At today’s meeting, the ECB’s Governing Council decided to lower the three key ECB interest rates.
The ECB’s Governing Council continued its easing cycle by lowering its three key ECB interest rates by 25 basis points. With progress continuing on the inflation front, the ECB expects that inflation will stabilise sustainably at its 2% inflation goal over its medium-term horizon.
Annual HICP inflation in the euro area has further decreased to 2.2% in March. Food price inflation picked up further to 2.9%, while goods inflation moved sideways at 0.6% compared to February. Energy prices decreased by 1.0%, after a rise observed in the beginning of the year. Services inflation continued to decrease with a March reading of 3.5%. The slowdown in service prices marks half a percentage point progress from the sticky services inflation levels recorded in the second half of 2024. Domestic inflation has declined since the end of last year and wage pressures are moderating. Most measures of longerterm inflation expectations currently stand at around 2%.