German inflation edges higher in April

Annual German inflation edged higher in April, the statistics office said on Wednesday, adding to hopes that the eurozone is pulling back from the threat of a prolonged period of deflation.

April consumer prices in Europe's biggest economy grew by 0.4 per cent compared with the same month last year after gaining 0.3 per cent in March, dpa quoted the office as saying in preliminary data. The increase was in line with forecasts.

The European Central Bank (ECB) has launched measures aimed at boosting inflationary pressures in the Eurozone, including a programme to buy government and private bonds.

Some analysts believe that data to be published on Thursday will show annual consumer prices in the 19-member eurozone climbed back into positive territory for the first time in six months in April.

Still, the currency bloc's inflation rate is likely to fall well short of the ECB's annual target of consumer prices coming in just below 2 per cent.