Inflation in Germany was the lowest in seven months in March, thanks mainly to a sharp slowdown in price growth. The Federal Statistical Office confirmed on Thursday that consumer prices rose by 7.4 percent year-on-year, following an increase of 8.7 percent in February. The figure was in line with the flash estimate published on March 30.
Energy prices rose by only 3.5 percent, which is a significant slowdown compared to February’s increase of 19.1 percent. A 16.1 percent drop in fuel prices had a major impact on alleviating inflationary pressures. Food prices grew at a faster rate in March by 22.3 percent, mainly due to a significant increase in the price of dairy products and eggs. The prices of goods increased by 9.8 percent and services by 4.8 percent.
The harmonized index of consumer prices (HICP), which is determined throughout the European Union on the basis of a uniform methodology, increased in Germany in March by 7.8 percent year-on-year, after an increase of 9.3 percent in February.
Month-on-month, consumer prices rose by 0.8 percent and the HICP gained 1.1 percent.
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