Important Economic Data
Inflation
Annual Inflation Rate: In May 2025, the annual inflation rate in the Eurozone was 1.9%, representing a decrease from April 2025 (2.2%). A year earlier, the rate was 2.6%.
Inflation in the EU: The annual inflation rate for the entire European Union was 2.2% in May 2025, down from 2.4% in April 2025. A year earlier, it was 2.7%.
Economic Growth
GDP Growth: Economic growth in the Eurozone was reported at 0.6% in the first quarter of 2025.
Labor Costs: Labor costs per hour in the Eurozone rose by 3.4% in the first quarter of 2025 compared to the previous year.
Labor Market
Unemployment Rate: The unemployment rate in the Eurozone was 5.9% in April 2025.
Job Vacancy Rate: The job vacancy rate in the Eurozone was 2.4%.
Impact on ECB Interest Rate Decisions and Market Sentiment
The data released by Eurostat is crucial for the interest rate decisions of the ECB. A lower inflation rate might indicate that the ECB does not need to raise interest rates further, which could have positive effects on the market. On the other hand, stable economic growth and rising labor costs could lead to another rate increase to keep inflation in check.
Market sentiment is also influenced by this data. Stable economic growth and a low unemployment rate could bolster investor confidence, while rising inflation might create uncertainty. The combination of these factors will influence the ECB’s decisions and market reactions in the coming months.