Germany: Harmonized inflation decreases in March
Harmonized inflation dropped to 2.3% in March—meeting market expectations—below February’s 2.7% and the Euro area average of 2.4%. Looking at the details of the release, prices for food and non-alcoholic beverages, as well as housing and utilities, increased at slower rates in March. In contrast, price pressures for transportation accelerated.
Accordingly, annual average harmonized inflation fell to a two-year low of 4.6% in March (February: 5.0%). Meanwhile, consumer price inflation ticked down to 2.2% in March from February’s 2.5%.
Finally, harmonized consumer prices rose 0.63% over the previous month in March, the same as February’s reading.