German inflation picked up notably in April, but was largely driven by price increases for package holidays and other vacation-related services around Easter.
The annual inflation rate, measured by harmonized European Union standards, rose to 2.0% from 1.5% in March, Germany's statistics office said Thursday. The outcome is in line with economists' forecasts.
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The pickup was led by price hikes in the services sector. The annual inflation rate in this category jumped to 1.7% in April from 0.7% in March.
"Package tour prices came in much higher than in April 2016, due to the late timing of Easter," said Ralph Solveen, an economist at Commerzbank. Easter this year was celebrated in April compared with March 2016. This prompted similar price increases elsewhere in the eurozone.
As a consequence, inflation in Europe's largest economy was running slightly above the European Central Bank's target in April. The ECB aims to anchor inflation in the eurozone at "below, but close to" 2%.
Germany's economics ministry forecast Wednesday that consumer prices will increase 1.8% this year owing to rising prices for energy and food. But inflation is forecast to ease to 1.6% in 2018.
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(END) Dow Jones Newswires
April 27, 2017 08:23 ET (12:23 GMT)