Inflation in Germany is at its lowest levels

The inflation rate in Germany stabilized during April at 2.2 percent on an annual basis, at its lowest level since April 2021, according to preliminary figures published Monday, which enhances the possibility of lowering interest rates in the euro zone.

The German statistics office, Destatis, added in a statement that the inflation rate excluding volatile food and energy prices reached 3 percent, a decrease of 0.3 percent compared to March.

With no bad inflation surprise recorded in the entire euro zone during the spring, an interest rate cut is possible at the next European Central Bank meeting in June, according to recent statements issued by its leaders, including its president, Christine Lagarde.

Within one month, prices in Germany rose by 0.5 percent.

Energy prices, the main factor in inflation for two years, fell by 1.2 percent compared to April 2023, but less quickly than in March (-2.7 percent) on the back of higher fuel prices and the lifting of the temporary VAT reduction in April on gas and heating prices.

In terms of foodstuffs, prices rose again by 0.5 percent over one month, after falling by 0.7 percent in March.

Service prices continue to move above the general index, rising by 3.4 percent in one month, while significant wage increases affect final prices.

The German government expects inflation to average 2.4 percent this year, after reaching 5.9 percent last year, thanks to a stronger-than-expected decline in energy prices. (Sky News Arabia)