Finance
German inflation eases further, strengthening case for ECB cuts
Published by Global Banking & Finance Review®
Posted on April 30, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 30, 2025
1 min readLast updated: January 24, 2026
German inflation fell to 2.2% in April, supporting ECB's potential rate cuts. Core inflation rose to 2.9%, while Eurozone inflation is expected at 2.1%.
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)
The article discusses the decline in German inflation and its implications for potential interest rate cuts by the European Central Bank.
Core inflation, excluding food and energy prices, rose to 2.9% in April from 2.6% in March.
Eurozone inflation is expected to be 2.1% in April, down from 2.2% in March, according to economists.
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