FX.co ★ Germany Inflation Slows in April but Core Prices Tick Higher

In April 2025, Germany’s consumer price inflation decreased for the second consecutive month, reaching 2.1%. This marks the lowest inflation rate since October 2024, although it remained slightly above the anticipated market forecast of 2.0%, according to preliminary estimates. The inflation rate for goods saw a significant decrease to 0.5% from 1.0% in March, largely due to a notable decline in energy prices (-5.4% compared to -2.8%) and a more modest increase in food prices (2.8% compared to 3.0%). Conversely, inflation in the services sector rose to a three-month peak of 3.9% from 3.5%. Core inflation, which excludes volatile items such as energy and food, increased to 2.9%, rising from a more than three-year low of 2.6% in March. On a month-to-month basis, consumer prices rose by 0.4%, up from a 0.3% increase in the previous month.