The latest figures on price rises reinforce the prospect of a fall in interest rates in the euro zone.
Inflation in Germany remained stable in April at 2.2% year-on-year, at its lowest level since April 2021, reinforcing the prospect of a cut in interest rates in the euro zone, according to provisional figures published on Monday .
The inflation rate excluding volatile food and energy prices is 3.0%, down 0.3 percentage points compared to March, added the Destatis statistics office in a press release.
This “continued easing of the so-called underlying inflation rate paves the way for the European Central Bank to reduce its interest rates in June,” comments Ulrich Kater, economist at Dekabank.
Because unless there is a bad surprise on inflation for the entire euro zone during the spring, a rate cut is a foregone conclusion at the next ECB meeting in June, according to recent statements from its leaders including the President Christine Lagarde.
Over one month, prices in Germany increased by 0.5%.
The earlier date of Easter at the end of March did not cause a specific jump in prices and there was no backlash in April either.
Energy prices, the leading factor in inflation for two years, fell by 1.2% compared to April 2023, but less quickly than in March (-2.7%) against a backdrop of rising prices. fuel and lifting in April of the temporary VAT reduction on gas and district heating prices.
On the food side, prices started to rise again, by 0.5% over one month, after the drop of 0.7% in March which marked a first since the beginning of 2015.
Prices of services continue to move above the general index, gaining 3.4% over one month, while significant wage increases influence final prices.
The German government sees inflation averaging 2.4% this year, after 5.9% last year, thanks to the stronger-than-expected decline in energy prices, which have damaged its industrial model since the Russian war in Ukraine.
Serving as a reference for the ECB, the overall harmonized price index increased slightly in April, to 2.3% year-on-year, remaining close to the 2% term objective.
In Spain, inflation accelerated slightly in April to reach 3.3% year-on-year, due to gas and food prices, according to a first official estimate.
