German Inflation Rises to 2.4% in April 2024, Driven by Energy and Food Prices

Germany's inflation rate rose to 2.4% in April 2024, driven by increasing energy and food prices. The Consumer Price Index (CPI) increased by 0.50% compared to the previous month, nearing the European Central Bank's target rate.

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Aqsa Younas Rana
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German Inflation Rises to 2.4% in April 2024, Driven by Energy and Food Prices

German Inflation Rises to 2.4% in April 2024, Driven by Energy and Food Prices

Germany's inflation rate has climbed to 2.4% in April 2024, up from 2.3% in March, according to the federal statistics office. The increase is primarily driven by rising energy and food prices, which have had a dampening effect on the inflation rate since January 2024.

Why this matters: A rising inflation rate can have significant implications for the German economy, including potential impacts on consumer spending and business investment. As the European Central Bank's target rate is approached, policymakers will be closely watching inflation, meeting consensus trends to inform monetary policy decisions.

Ruth Brand, president of the federal statistics office, stated, "The rate of inflation has been below three per cent since the start of the year. Energy and food prices, in particular, have had a dampening effect on the inflation rate since January 2024." Despite the overall inflation rate remaining relatively low, core inflation, which excludes food and energy prices, has been higher than the headline figure.

The Consumer Price Index (CPI) increased by 0.50% in April 2024 compared to the previous month.

Germany's final inflation confirmed rate has remained relatively stable in recent years, with the country's strong economic performance and low unemployment rates contributing to a steady consumer price index. However, the COVID-19 pandemic in 2020 led to a temporary decrease in inflation, as lockdowns and reduced economic activity suppressed consumer demand.

As the German economy continues to recover from the pandemic, the rise in final inflation, confirmed to 2.4% in April 2024 indicates a gradual return to pre-pandemic levels. The federal statistics office will continue to monitor the inflation rate closely.