Germany’s inflation stable at three-year low

Annual consumer price inflation in Germany held steady at 2.2% in April, a preliminary figure showed on Monday.

It has been the lowest inflation rate since May 2021, while market consensus had pointed to an acceleration to 2.3%.

In April, services inflation slowed to 3.4% from 3.7% in March, data by the Federal Statistical Office showed.

On the other hand, food prices rebounded 0.5% year-on-year after a 0.7% drop in March.

Also, the cost of energy decreased at a slower rate, by 1.2% year-on-year, compared to a 2.7% slump in March.

The annual core inflation rate, which excludes volatile categories such as food and energy, eased to 3% in April, the lowest rate since March 2022.

Meanwhile, Germany’s EU-harmonized inflation rate picked up to 2.4% in April from an almost three-year low of 2.3% reported in March.

In monthly terms, consumer prices in the country increased 0.5% in April, following a 0.4% rise in the prior month.

The Euro was little changed on the day against the British Pound, with the EUR/GBP currency pair last trading at 0.8545.