Germany: Inflation rises modestly in March

Consumer prices in March rose 0.8% over the previous month, according to preliminary data released by the Federal Statistics Office (Destatis) on 30 March. The result exceeded February’s 0.4% rise and marked the largest increase in over a year.

Inflation rose from a flat reading in February to 0.3% in March. Meanwhile, annual average inflation in March came in at 0.3%, matching February’s reading.

Harmonized consumer prices rose 0.1% annually in March, which contrasted February’s 0.2% decrease. Average HICP inflation remained at 0.2% in March.

The government expects inflation to be 1.2% in 2016. FocusEconomics panelists expect inflation to average 0.8% in 2016, which is unchanged from the previous month’s forecast. For 2017, panelists expect inflation to increase to 1.7%.