Inflation rose again in Germany
Inflation in the country increased for the first time since December with the end of energy support.
According to data from the German Statistical Office, EU-compatible leading inflation rose from 2.3 percent to 2.4 percent in April. The expectation was for inflation to be 2.3 percent.
EU compatible CPI increased by 0.6 percent compared to the previous month.
The data exceeding the forecast signaled that it would be difficult for the European Central Bank to reach the 2 percent target.
Core inflation, which does not include food and energy prices, decreased to 3 percent, and core inflation was 3.3 percent in March.
Eurozone inflation, which will be announced tomorrow, is expected to remain at 2.4 percent. As inflation, which reached double digits in 2022, begins to decline, European Central Bank officials are expected to start reducing interest rates in June.
Again, according to the data released today, inflation in Spain increased to 3.4 percent.
Bloomberg Economics Economist Martin Ademmer said that German inflation has increased with the increase in energy costs and may rise further in the coming months due to the base effect in transportation services.
Business expectations in the country have improved, and especially service sector activity has recovered.