Eurozone Inflation Data Surprises with Higher April Figures

French consumer prices rose more than expected in April, with the harmonized inflation rate reaching 0.8% year-on-year, surpassing analyst estimates. The increase was mainly driven by higher prices in services, particularly transport, and food, while energy prices continued to decline and manufactured goods and tobacco prices remained largely unchanged. Despite this uptick, inflation has not been a major concern in France recently, which aligns with dovish commentary from French ECB officials supporting rate cuts. Meanwhile, French consumer spending in March fell by 1.0%, contrary to expectations of stable spending. These developments are being closely watched, but are not expected to alter the European Central Bank's plan to cut rates in June, though future trade negotiations could influence economic activity and price trends.