UPDATE 1-German inflation accelerates to 2.9% in April as energy costs soar

German inflation slightly accelerated in April due to ‌surging energy prices against the backdrop of the war in Iran.

Inflation rose to 2.9% year-on-year, preliminary data from the national statistics ‌office showed on Wednesday. Analysts polled by Reuters had ‌forecast the EU-harmonised consumer price index to increase to 3.1% from the 2.8% reported for March.

Energy prices were up 10.1% compared with the ⁠same ​month of the ⁠last year. The core inflation index, which excludes volatile food and energy prices, ⁠fell to 2.3% in April from 2.5% in March.

The German ​data comes ahead of the euro zone inflation release ⁠on Thursday. Inflation in the bloc is expected at 2.9% in April, ⁠up ​from 2.6% in the previous month, according to economists polled by Reuters. The European Central Bank is ⁠expected to keep interest rates on hold at a meeting on ⁠Thursday, but ⁠hikes are likely to be on the table at the next meeting in June.

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