BERLIN, May 12 (Xinhua) -- Germany's inflation stood at 2.9 percent in April, the highest since January 2024, as surging energy prices continued to drive up consumer costs in Europe's largest economy, official data showed Tuesday.
The reading followed a 2.7-percent rise in March. Inflation in Germany had hovered near the 2-percent mark for several months before Middle East tensions escalated in late February and pushed up energy prices.
According to the Federal Statistical Office, Destatis, energy prices jumped 10.1 percent year on year in April, the sharpest increase in more than three years.
"Overall inflation increased for the second consecutive month as a result of another rise in energy prices linked to the (Iran) war," said Ruth Brand, president of Destatis. "Consumers are particularly feeling the persistent price pressure regarding motor fuels."
Concerns over conflict-related disruptions to energy shipments through the Strait of Hormuz have pushed fuel prices higher in Germany in recent months. Energy prices had already risen 7.2 percent year on year in March, after falling 1.9 percent in February.
To cushion the impact of higher fuel costs, the German government cut fuel taxes temporarily for two months, lowering levies on petrol and diesel by around 17 euro cents (about 0.2 U.S. dollars) per liter. Brand said the measure was not yet reflected in the April inflation as it only took effect at the beginning of May.
Economists warned that the energy shock was increasingly feeding through into broader consumer prices. Destatis data indicated that goods prices rose 2.9 percent in April from a year earlier, up from 0.8 percent in February and 2.3 percent in March.
A survey published by the Munich-based Ifo Institute also pointed to further price increases ahead. Its price expectations index climbed to 31.6 points in April from 25.5 in March, the highest level since January 2023.
The institute noted that the conflict was increasingly weighing on the German economy, with companies passing rising energy costs on to consumers more frequently, particularly in sectors like manufacturing, hospitality and retail. ■