INSUBCONTINENT EXCLUSIVE:
March.This marks the lowest level since October 2024 and shows a gradual easing of headline inflation, though the figure still sits just
above market expectations
On a monthly basis, prices rose by 0.4%, matching the previous trend.Energy prices drove the slowdown, falling sharply by 5.4% compared to
This drop reflects ongoing declines in global oil prices and reduced demand, which have helped offset inflation elsewhere in the
However, some food categories, such as fruit and vegetables, saw much higher price jumps, indicating continued volatility in agricultural
markets.Goods inflation slowed to just 0.5% in April, down from 1.0% in March
This shift underscores the impact of cheaper energy and a more stable supply environment for manufactured products.German Inflation Slows,
but Service Sector Costs Remain Stubbornly High
Service prices accelerated to a three-month high of 3.9%, up from 3.5% in March
Sectors like transportation, healthcare, and insurance saw some of the steepest increases, with combined passenger transport and social
services leading the way.Core inflation, which excludes the often volatile food and energy categories, rose to 2.9% in April from 2.6% in
This uptick signals that underlying cost pressures remain, particularly in the service sector.Rents, a key component of household spending,
increased by 2.1%, just below the overall inflation rate
Still, the persistent rise in core and service prices suggests that inflationary pressures have not fully subsided.For businesses and
households, the headline figures offer some relief, but the details reveal that cost pressures remain uneven
Companies in the service sector continue to face rising input costs, while consumers still see notable price increases in essential services
and some food categories.The data suggest that while the inflation picture is improving, the underlying story remains complex and closely
tied to sector-specific dynamics and broader economic trends.
