German inflation heats up in April

12 May 2004

WIESBADEN – Rising fuel prices and medical costs boosted German inflation in April to 1.6 percent, the highest annual rate in more than two years, while rising 0.3 percent month-on- month from March, government officials reported Wednesday.

The Federal Statistics Office said the annual rate was the highest measured since March 2002 when consumer inflation was running at 2.0 percent.

The annual rate in March had been 1.1 percent, while that in February was 0.9 percent.

The office said that petroleum product prices were up 2.9 percent from April of 2003 and were 3.4 percent higher than in March, a key factor in fuelling April’s cost of living rise.

A further factor was higher medicine costs to consumers which took effect on 1 April under the German government’s health sector reforms, the office report said.

Medications in April were 8.8 percent more expensive than in March, the office said. Overall, health care costs in April were 19.4 percent higher than in April of last year.

Using a different measure to harmonize Germany’s consumer price index with the rest of Europe, the office said that the April inflation figure was 1.7 percent, while rising 0.3 percent from March levels.

DPA
Subject: German news