Germany: Harmonized inflation intensifies in April

German harmonized consumer prices rose 1.0% month-on-month in April, doubling March’s reading of a 0.5% increase. April’s print reflected noticeably more expensive prices for transportation, and recreation and culture. Meanwhile, restaurant and hotels, and household- and utility-related items also became pricier.

Harmonized inflation also accelerated in April to 2.1% from 1.4% in March; annual average harmonized inflation remained stable at 2.0% for the fourth month in a row, however. Lastly, non-harmonized annual average inflation edged up from 1.7% in March to 1.8% in April.

Germany Inflation Forecast

The FocusEconomics Consensus Forecasts panelists see harmonized inflation averaging 1.4% in 2019, which is unchanged from last month’s forecast. For 2020, our panel sees average inflation at 1.6%. In December, the Central Bank expected harmonized inflation of 1.4% in 2019 and 1.8% in 2020.