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4w ago

German State Readings Point to April Inflation Near 2.9%, Slightly Below Forecast

Rising energy costs raise the risk that broader price pressures will build.

A view of the vegetables kept on display at the International Green Week agriculture fair in Berlin, Germany January 19, 2024. REUTERS/Annegret Hilse
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Overview

  • Aggregating the latest state releases, analysts estimate Germany’s April consumer inflation at about 2.8% to 2.9%, a touch under the 3.0% economists expected.
  • Bavaria posted 2.9% year over year, Saxony 3.0%, Baden‑Wuerttemberg 2.6%, and North Rhine‑Westphalia 2.7%, signaling a broad but modest uptick.
  • At this pace, headline inflation would be the highest since January 2024, while a full 3.0% reading would be the strongest since December 2023.
  • Energy prices are driving the increase by lifting household bills and business input costs, which can pass into prices for other goods and services.
  • The national figure is still preliminary pending the federal release, with some states such as Brandenburg and Hesse yet to publish complete data.