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Top News

German inflation hits two-and-half year low

Published April 29, 2013 Updated April 29, 2013 12:37pm

imageFRANKFURT: Inflation in Germany, Europe's biggest economy, slowed to its lowest level in two and a half years in April, official data showed on Monday.

The cost of living in Germany increased by 1.2 percent on a 12-month basis last month, down from 1.4 percent in March, the federal statistics office Destatis calculated in preliminary data.

On a monthly basis, the consumer price index (CPI) fell by 0.5 percent in April from March.

The last time, the annual inflation rate was this low was in September 2010.

Using the Harmonised Index of Consumer Prices (HICP), the ECB's inflation yardstick, the rate of inflation in Germany slumped to 1.1 percent in April from 1.8 percent in March, Destatis said.

The ECB defines price stability as increases in HICP of close to but just below 2.0 percent.

Preliminary inflation data are calculated using consumer price data for six of Germany's 16 federal states.

Final data, based on statistics for all 16 states, are scheduled to be published on May 14.

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