German inflation picked up

BERLIN: German consumer inflation bounced back in April and came close to the European Central Bank´s price stability target of just under 2 percent, regional data suggested on Thursday.

The figures from several German states hinted that price pressures in Europe´s biggest economy - partly due to a rise in transportation costs - are slowly building up as an economic upswing continues and the labour market booms.

The German data followed Spanish price figures that showed consumer inflation prices rose more than expected to 2.6 percent on the year in April.  In Germany´s most populous state, North Rhine-Westphalia, annual inflation picked up to 2.1 percent from 1.7 percent in March.

It also rose to 2.1 percent in Hesse and Saxony. In the eastern state of Brandenburg, it reached 1.8 percent while it accelerated to 1.9 percent in Bavaria and to 2.0 percent in Baden-Wuerttemberg.

The state readings, which are not harmonised to compare with other euro zone countries, will feed into nationwide inflation data due at 1200 GMT.