Germany’s inflation rate fell sharply in April to 0.9% year-on-year, its lowest level since 2016.
Germany’s inflation rate fell sharply in April to 0.9% year-on-year, its lowest level since 2016, according to final figures released Thursday by the Destatis Institute.
However, this score is slightly higher than the previous estimate by the statistical institute, which on April 29 predicted inflation at 0.8% over one year.
Still reaching 1.4% in March, German inflation decelerates to its lowest level since November 2016, when it reached 0.8%.
This score falls far short of the European Central Bank’s target for inflation “close to but below 2%” in the euro area.
Over one month, prices rose 0.4%, against 0.3% in the previous estimate, against the background of an expected recession in the largest economy in the euro area, and a historic drop in oil prices in April.
This sharp slowdown is largely due to the drop in energy prices, down 5.8%, from -0.9% in March, while the price of oil reached historic lows on world markets these last weeks.
Price increases in the services sector were stable in April at 1.3%, compared to 1.4% in March and 1.6% in February.
Food prices, on the contrary, appreciated strongly by 4.8% in April, against 3.7% in March and 2.3% in January. The rise in prices over one year particularly affected vegetables (+ 6.5%), fruits (+ 11%) and meat (+ 9.3%).
The harmonized consumer price index (HICP), used as a benchmark by the ECB, also shows inflation of 0.8% year-on-year, and 0.4% month-on-month, confirming provisional figures.