Germany: Inflation remains stable in April

The consumer price index was unchanged in April from the previous month, contrasting the March’s 0.4% month-on-month increase in prices, data released by the Federal Statistics Office (Destatis) on 16 May showed. Higher prices for energy and tobacco were offset by lower prices for consumer goods and dental services.

Inflation was stable at the prior month’s reading of 1.6% in April, while annual average inflation was also stable at the print seen in the previous month (1.6%).

Lastly, harmonized inflation (HICP) edged down from 1.5% in March to 1.4% in April, slightly undershooting market expectations, while annual average HICP inched down from 1.6% in March to 1.5% in April.

Germany Inflation Forecast

The Central Bank expects inflation of 1.6% in 2018 and 1.7% in 2019. FocusEconomics panelists see inflation averaging 1.6% in 2018, which is down 0.1 percentage points from last month’s forecast. For 2019, panelists forecast inflation of 1.8%.