According to the Federal Statistical Office, the upward trend in German consumer prices continued in April, driven by the background of the conflict in the Middle East.
The overall inflation rate is anticipated to reach 2.9 percent. This marks an increase of 0.6 percent compared to the previous month, bringing the fourth month of the year to a higher rate than March’s 2.7 percent.
Regarding the underlying components, energy prices saw a significant jump, rising by 10.1 percent compared to the previous year. This represents the largest energy price increase recorded since February 2023 (which saw a 19.1 percent increase compared to February 2022). Meanwhile, food prices increased by 1.2 percent, and service prices rose by 2.8 percent.
A more indicative metric, the core inflation rate (which excludes fluctuations in food and energy prices), is projected to be 2.3 percent. This figure is 0.2 percentage points lower than the rate recorded in the month prior, placing it clearly below the overall inflation index.
