Wiesbaden, May 14, 2024 (Financeflashnews) – The year-on-year inflation rate in Germany remained stable at 2.2% in April 2024, according to finalized data released by the Federal Statistical Office (Destatis) on Tuesday. This confirms the preliminary estimate. “The inflation rate has been below 3% since the beginning of the year. Energy and food prices in particular have had a dampening effect on inflation since January 2024,” said Destatis President Ruth Brand.
German inflation, which is the lowest in the eurozone’s largest economy for almost three years, is thus closer to the European Central Bank’s (ECB) target of 2%.
Key points:
- Inflation: 2.2% (April 2024) – unchanged from March 2024
- Lowest inflation in nearly three years
- Close to ECB target of 2%
- Slowdown in growth of service prices
- Increase in food prices
- Smaller decline in energy prices
- Core inflation fell to 3% (lowest since March 2022)
- 0.5% month-on-month increase in prices
- Harmonised Index of Consumer Prices (HICP): 2.4% year-on-year, 0.6% month-on-month
Factors affecting inflation:
- Energy and food prices
- Economic conditions and price growth
- Services
- Food
- Energy
- Core inflation
Outlook:
Inflation in Germany is expected to remain moderate in the coming months. The development will depend on factors such as the global economic situation, energy prices and domestic fiscal policies.
