Germany faces unexpected rise in inflation 16:33

Inflation in Germany unexpectedly rose to 2.4% on an annual basis in April, after 2.3% in March. writes about this Bloomberg .

The price increase exceeded the forecasts of economists who expected the indicator to remain at 2.3%. The agency explained that one of the acceleration factors was the completion of state support measures to reduce energy costs.

At the same time, inflation in Spain rose to 3.4% after the government canceled energy subsidies. Ireland, on the contrary, showed a slowdown in price increase from 1.7% to 1.6%.

Core inflation, which excludes variable components such as energy and food across the Eurozone, is expected to continue its decline in April. However, the general rate is expected to be 2.4%, unchanged from March.

Despite inflation retreating from double-digit peaks in 2022, the ECB is only gradually preparing for its first interest rate cut in June. The exact extent of policy easing this year remains a matter of debate amid uncertainty, the newspaper writes.

The regulator is paying most attention to domestic service prices, where growth remains stubbornly high due to wage increases to offset the rising cost of living. The end of the temporary natural gas tax cut in Germany helped accelerate inflation in April. Experts predict that the core interest rate will slow to 2.9% from 3.2% in March.

Before that the European Commission appreciated Damages of the energy crisis in the region.

The increase in raw material costs in the West before named It is beneficial for the economy.

What are you thinking?

Source: Gazeta


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