Eurozone inflation rose to 3.0% in April, surpassing the European Central Bank's 2% target, according to Eurostat data. Energy costs accounted for the majority of this increase. Despite this, underlying inflation, excluding volatile food and energy prices, slowed to 2.2% from 2.3% a month earlier. The high headline inflation suggests interest rate hikes, but the lack of significant second-round effects could lead to further inflation. The ECB is expected to raise its 2% deposit rate in June and possibly more before the end of the year.