German inflation at near three-year low

Inflation in Germany, Europe’s largest economy, has hit its lowest rate in nearly three years, largely on the back of a fall in fuel costs.

The Federal Statistical Office said today that consumer prices rose 1.2% in April 2013 compared to the same month a year ago.

That is down on the 1.4% rate in March and takes inflation to its lowest level since August 2010 when prices rose 1%.

The European Central Bank’s target is to achieve inflation of just below 2% across the economy of the 17 European Union countries that use the euro.

In April, eurozone inflation fell to 1.2% – a drop that was largely behind the ECB’s decision to cut its benchmark interest rate to a record low of 0.5%.