Germany: Harmonized inflation falls less than expected in April
Latest reading: Harmonized inflation inched down to 2.2% in April from March’s 2.3%. April’s figure marked the lowest inflation rate since September 2024 and was in line with the Euro area average. Still, the reading remained above the ECB’s 2.0% target for the seventh straight month and was slightly above market estimates. Looking at the details of the release, softer cost pressures for food and housing outweighed a faster rise in transport prices.
As a result, the trend pointed down slightly, with annual average harmonized inflation coming in at 2.4% in April (March: 2.5%). Meanwhile, consumer price inflation edged down to 2.2% in April from the previous month’s 2.3%.
Finally, harmonized consumer prices increased 0.46% in April over the previous month, accelerating from March’s 0.38% rise and marking the joint-fastest rise year to date.