German inflation eases further, strengthening case for ECB cuts

By Maria Martinez

BERLIN (Reuters) - German inflation fell in April, data showed on Wednesday, bolstering the case for policymakers seeking further interest rate cuts at the European Central Bank.

Inflation eased further in April to a slightly higher-than-forecast 2.2%, according to preliminary data from the federal statistics office.

Analysts polled by Reuters had projected an April reading of 2.1%, after a year-on-year increase in consumer prices of 2.3% in March, based on data harmonised to compare with other European countries.

The data comes ahead of the euro zone inflation release on Friday. Inflation in the bloc is expected at 2.1% in April, down from 2.2% in the previous month, according to economists polled by Reuters.

ECB policymakers are becoming increasingly confident about cutting interest rates in June as inflation continues its march lower. The ECB trimmed its benchmark rate to 2.25% earlier this month.

However, core inflation, which excludes volatile food and energy prices, rose to 2.9% in April from 2.6% in the previous month.

(Reporting by Rachel More and Maria Martinez, editing by Thomas Seythal and Ludwig Burger)