German consumer inflation came in at 2.2% in April on an annual basis, easing slightly from March levels but coming in above expectations, preliminary data showed Wednesday.
Economists polled by Reuters had estimated a 2.1% reading. The country’s consumer price index, harmonized for comparability across the euro zone, had come in at 2.3% in March on an annual basis.
So-called core inflation, which excludes food and energy prices, accelerated to 2.9% in April from 2.6% in March. The closely-watched services print also jumped to 3.9%, after a 3.5% reading in the previous month.
Energy prices meanwhile dropped sharply, falling by 5.4% according to the statistics office.
While the inflation rate closing in on the European Central Bank’s 2% mark is good news for consumers at first glance, there are some less positive points about the data on closer look, Sebastian Becker, economist at Deutsche Bank, said in a note Wednesday.
The slight decrease of the headline figures only took place due to lower energy and food costs, he said. “In comparison, the core inflation rate, which is more important for the ECB … rose notably again.” And services inflation appears “considerably more stubborn than expected,” Becker added.
BBC
