Germanys inflation unexpectedly accelerated further in April to set a new high in over four decades, driven by runaway energy prices and increased production costs due to supply bottlenecks in the backdrop of the Russias invasion of Ukraine. The flash consumer price index rose 7.4 percent year-on-year following a 7.3 percent increase in the previous month. Compared to the previous month, the CPI rose 0.8 percent and the EU measure of inflation climbed 0.7 percent. Food inflation accelerated to 8.5 percent from 6.2 percent. Energy inflation eased slightly, but remained high at 35.3 percent versus 39.5 percent in the previous month. Food inflation accelerated to 8.5 percent from 6.2 percent. Energy inflation eased slightly, but remained high at 35.3 percent versus 39.5 percent in the previous month. Services costs grew 2.9 percent year-on-year after a 2.8 percent increase in March. Rents rose 1.6 percent annually following a 1.5 percent gain in the previous month.
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