German inflation was unchanged in April, official data showed Monday, holding at a three-year low as hopes grow that the European Central Bank will soon start cutting interest rates.
Consumer prices in Europe鈥檚 largest聽economy聽grew 2.2 per cent from a year ago, according to preliminary data from federal statistics agency Destatis.
It was the same rate as in March, and its lowest level since April 2021.
Closely watched core inflation 鈥� which excludes volatile energy and food prices 鈥� eased to three per cent from 3.3 per cent in March.
Ulrich Kater, an economist from DekaBank, said the 鈥榝urther easing of the core inflation rate clears the way for the ECB to cut interest rates in June鈥� at its next meeting.
But he cautioned that policymakers must remain vigilant to risks that could push inflation higher, in particular wage growth.
The steady German inflation rate was helped by a fall in energy prices, which were down 1.2 per cent on the same month last year.
However, energy prices eased less than in March in part because of rising fuel costs.
Energy costs skyrocketed after Russia invaded Ukraine in early 2022 but have been falling in recent months, helping to lower overall inflation.
Food prices edged up 0.5 per cent, while the price of services went up by 3.4 per cent, driven by pay rises in many sectors, although this was slower than the increase in March.
The German government forecasts inflation at 2.4 per cent this year, following a 5.9-per cent rate in 2023.
In Spain, inflation accelerated slightly in April to 3.3 per cent from a year earlier, driven by gas and food prices, according to preliminary data.
A series of aggressive ECB interest rate hikes since 2022 have helped bring inflation back towards the bank鈥檚 target of two-per cent across the eurozone.
But with economic growth in the 20-nation single聽currency聽area struggling, calls have been growing louder for cuts to begin soon.
