GDP grows by just 0.1 in 1Q
Germany stagnates while southern Europe grows
Inflation data mixed as energy subsidies phased out

April 28 Reuters The euro zone economy is barely growing but inflation in the bloc remains high, leaving the European Central Bank with little choice but to inflict more financial pain on households and businesses to tame prices.

Buffeted for more than a year by the surge in fuel prices that followed Russia39;s invasion of Ukraine, people in the 20 countries that share the euro are now starting to feel the effects of the ECB39;s massive increase in borrowing costs.

Economic output in the euro zone increased by just 0.1 in the first three months of the year as domestic consumption stagnated in many economies, a sign that surging inflation and falling real incomes are taking their toll on consumers.

Growth came mostly from exports, the result of a revival in global trade as China reopened for business after the pandemic.

But national data showed price growth was only falling slowly, probably leaving the ECB with no choice but to keep raising interest rates.

Individual country inflation data keeps pressure on the European Central Bank to remain aggressive on the hiking front at next week39;s central bank meeting despite eurowide growth not that far from flatlining, said Charles Hepworth, an investment director at asset manager GAM Investments.

The ECB is widely expected to raise rates for the seventh straight meeting on May 4, with…