Inflation continued in April

Consumer prices once again significantly increased in April. According to the Federal Statistical Office, the consumer price index for Germany rose by 2.4% in April 2008 as compared to April 2007. In comparison with April 2008, however, this index slightly decreased by 0.2%. In March there had still been an increase by 3.1% on the previous month. Thus, inflation is rising less strongly as was already the case in March.

This development in April 2008, however, is due to two special factors: in particular prices for package holidays (-7.4%) and accommodation services (-0.4%) fell this year due to Easter holidays which this year were in March (so-called calendar effect). The introduction of study fees in some Federal States led to a smaller inflation rate. Both these above-mentioned factors decreased inflation by 0.2% each.

Inflation is particularly driven by increasing prices for mineral oil products. Despite a strong Euro, the price for crude oil on world markets continues rising. If the price rise for mineral oil products had not been taken into account, then inflation would have increased by just 1.7%. Prices for foodstuffs and non-alcoholic beverages increased by 7.1% in April this year, as compared to April 2007.

The European consumer price index calculated for Germany was by 2.6% higher in April 2008 as compared to April last year. On the previous month the index fell by 0.3%. GERMAN