Eurozone CPI Jumps to 3.0% on Energy Surge, Core Eases to 2.2% After Inflation Warnings

Eurozone headline CPI rose to 3.0% in April from 2.6%, driven by energy inflation surging to 10.9%, though core CPI ticked down to 2.2% as services eased to 3.0%. This caps a week of hawkish signals starting with ECB's SAFE survey on April 27 showing firms' short-term inflation expectations at 3.0%, input costs at 5.8%, and selling prices at 3.5%, followed by consumers lifting one-year views to 4.0% on April 28 amid GDP growth forecasts cut to -2.1%. Sentiment hit 2020 lows at 93.0 on April 29 with inflation expectations at 49.1. Markets price 60% odds of a June ECB hike, fueling Euro vs US Dollar volatility on mixed growth-inflation dynamics.