Germany: Inflation drops somewhat in April

Consumer prices in April fell 0.2% over the previous month, according to preliminary data released by the Federal Statistics Office (Destatis) on 28 April. The result contrasted March’s 0.8% rise, which had marked the largest increase in over a year.

Inflation fell from 0.3% in March to 0.1% in April. Meanwhile, annual average inflation in April came in at 0.3%, matching March’s reading.

Harmonized consumer prices dropped 0.1% annually in April, which contrasted March’s 0.1% increase. Average HICP moderated from 0.2% in March to 0.1% in April.

The government expects inflation to be 1.2% in 2016. FocusEconomics panelists expect inflation to average 0.8% in 2016, which is unchanged from the previous month’s forecast. For 2017, panelists expect inflation to increase to 1.7%.