2023-04-30 12:20:00
High inflation is a burden for consumers in Germany. Now there is another small glimmer of hope.
Inflation slowed somewhat for the second month in a row. At 7.2 percent, annual inflation remained at a comparatively high level in April, according to initial calculations by the Federal Statistical Office. According to the Wiesbaden authorities on Friday, consumer prices rose by 0.4 percent from March to April of the current year.
In March, the annual inflation rate in Germany, at 7.4 percent, fell below the eight percent mark for the first time since August 2022. High inflation is a challenge for consumers: it saps their purchasing power, people can afford less for one euro.
Food inflation remains high
According to preliminary calculations by statisticians, food prices rose by 17.2 percent in April within a year. As a result, the upward trend in prices in this area weakened again for the first time this year: in January 2023, food prices were 20.2 percent above the level of the same month last year, in February it was 21.8 percent and then 22.3 percent in March.
On the other hand, according to official figures, the rise in energy prices picked up again in April. According to calculations by the Federal Office, energy prices rose by 6.8 percent year-on-year after growth of 3.5 percent in March and plus 19.1 percent in February. The federal government is trying to make natural gas, electricity and district heating more affordable by applying price brakes retroactively to January 1st.
The European Central Bank is trying to curb inflation with higher interest rates. Because higher interest rates make loans more expensive, which can slow down demand. The central bank is aiming for stable prices overall for the euro area with an inflation rate of two percent. After six interest rate increases in a row, the key interest rate in the euro area is 3.5 percent. Another hike is expected at the next ECB meeting on May 4th.
1682867393
#Economic #news #ticker #shoe #chain #Reno #files #bankruptcy #Switzerland #Sergio #Ermotti #relies #fighters #UBS #leadership