11 May 2005, 11:18  Consumer prices in Germany rose more than initially estimated

Consumer prices in Germany, Europe's largest economy, rose slightly more than initially estimated in April, but economists said this was unlikely to have a signficant impact on euro zone inflation. The Federal Statistics Office said on Wednesday that German consumer prices rose by 1.6 percent in April year-on-year, compared with a previous estimate of 1.5 percent. Prices rose by 0.1 percent on the month. The Office had initially said prices were unchanged from March. "Prices for mineral oil products boosted the annual rate of inflation in April 2005, as they have done for over a year now," the Office said in a statement. "Without heating oil and fuels the annual rate would only have been 1.1 percent." In March, German consumer prices rose by 0.3 percent month-on-month and by 1.8 percent year-on-year. The Office said cheaper package holidays and lodgings had helped to bring down the annual rate of inflation in April. When calculated according to European Union standards (HICP), consumer price inflation in Europe's largest economy eased in April to an annual rate of 1.4 percent from 1.7 percent in March. This confirmed the Office's initial estimate. However, the Office added that HICP was unchanged month-on-month, revising up a previous estimate that prices had fallen by 0.1 percent from March. Klaus Schruefer, an economist at SEB bank in Frankfurt, said the upwards revision in Germany, which accounts for around one third of the eurozone price index, would probably not change the outlook for the 12-nation bloc. "It's been revised upwards a bit but I don't think that will have any effect on eurozone inflation," he said. "In fact, I expect that to be revised down slightly to 2.0 percent."

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