German Inflation Remains Steady in Further Sign of Eurozone Easing

By Joshua Kirby

German inflation held steady this month, adding to signs that price pressures have cooled sustainably in the eurozone's most important economy.

Consumer prices were on average 2.2% higher than in April of last year, the same rate booked in March, according to national-standard figures set out Monday by German statistics authority Destatis. Core inflation, stripping out food and energy prices, eased to 3.0% on year.

The reading, in line with economists' forecasts, leaves the inflation at its lowest level in close to three years and will boost confidence that it has remained stable in the wider eurozone. The 20-member currency bloc is expected to book average price rises of 2.4% in April, as in March, a result that looks likely barring any major surprises from France or Italy.

With inflation now trending sustainably closer to the European Central Bank's target of 2%, the bank looks ever likelier to begin cutting interest rates at its meeting in June. The eurozone economy has begun to show some green shoots of recovery but the rebound remains limp and shaky for now, and trimming borrowing costs would offer a needed boost to the bloc's growth.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby