German inflation hits 27-month high as energy prices soar

(Sharecast News) - German inflation rose to its highest level in 27 months in April as energy prices jumped on the back of supply disruptions linked to the conflict in the Middle East, though core inflation dropped to its lowest in nearly five years. The annual rate of consumer price inflation picked up to 2.9% this month, from 2.7% in March, according to the Federal Statistical Office.

While that was under the 3.0% expected by economists, it was still the highest rate of price growth since January 2024.

Nevertheless, core inflation - which excludes the volatile food and energy categories - eased to 2.3% from 2.5%, marking the lowest rate since June 2021.

While service-sector inflation slowed to 2.8% from 3.2%, goods inflation rose to 2.9% from 2.3%. as a result of energy prices soaring 10.1% over last year following a 7.2% rise in March, marking the biggest year-on-year jump in energy prices since February 2023.

Food inflation also pressured overall prices higher, accelerating to 1.2% from 0.9%.