High fuel prices resulting from the war in Iran led to a renewed rise in inflation in April. On Tuesday, the Federal Statistical Office in Wiesbaden confirmed its initial estimate, according to which consumer prices rose by 2.9 percent compared to the same month of the previous year. Prices for food and services increased at a rate below the overall average; consequently, the surge in prices remained moderate.
Energy costs rose by a substantial 10.1 percent—a development attributed primarily to trends in the crude oil market. Consequently, fuel prices stood 26.2 percent above the level recorded in the same month of the previous year. However, statisticians emphasized “that price increases for energy products had been significantly more pronounced immediately following the outbreak of the war in Ukraine.”
This is also reflected in the price trends for household energy. While light heating oil did rise in price by 55.1 percent, it accounts for only a small share of private household expenditure. Electricity, natural gas, and district heating, conversely, became cheaper; as a result, household energy costs overall were actually slightly lower in April than in the corresponding month of the previous year.
“Although inflation reached a high level of 2.9 percent in April, the surge in prices has not yet been broad-based,” explained Silke Tober, an inflation expert at the Institute for Macroeconomics and Business Cycle Research (IMK) of the Hans Böckler Foundation. “The sharper rise in fuel prices would, in itself, have resulted in even higher inflation had the rate of price growth for services not declined. Moreover, the increase in food prices remained moderate.”
Food prices rose by 1.2 percent—a rate below the overall average. Increases were particularly pronounced for sugar, jam, honey, and other confectionery (6.6 percent); fish and fish products (3.7 percent); and meat and fruit (both 3.6 percent). Egg prices also rose sharply, climbing by 14.6 percent.
In contrast, edible fats in particular were significantly cheaper in April than in the same month of the previous year. The price of butter plummeted by 25.4 percent, while that of olive oil fell by 8.9 percent. Potatoes and dairy products were also noticeably cheaper.
At 2.8 percent, the inflation rate for services fell below the overall average for the first time in years. The main price drivers in this sector were social services, local public transport tickets—primarily due to the Deutschlandticket being more expensive compared to the same month last year—and car repairs.
AFP translated by Blackout News