Germany: Harmonized inflation eases in March

Harmonized consumer prices rose 0.5% month-on-month in March, matching the price increase in February. March’s print reflected pricier clothing and footwear; alcoholic beverages and tobacco; and transportation. On the other hand, food and non-alcoholic beverages became cheaper while prices for household equipment also dropped.

Harmonized inflation, meanwhile, dropped from 1.7% in February to 1.4% in March; however, annual average harmonized inflation remained stable at 2.0% in March for the third month running. Lastly, non-harmonized annual average inflation edged down to 1.7% from 1.8% in February.

Germany Inflation Forecast

The FocusEconomics Consensus Forecasts panelists see harmonized inflation averaging 1.5% in 2019, which is down 0.2 percentage points from last month’s forecast. For 2020, our panel sees average inflation at 1.7%. In December, the Central Bank expected harmonized inflation of 1.4% in 2019 and 1.8% in 2020.