Inflation in Germany significantly weakened in March, sliding to its lowest level in seven months, confirmed today by the statistical office’s preliminary estimate, while warning that households are still heavily impacted by the continuous strong rise in food prices.
The inflation rate dropped to 7.4 percent in March, down from 8.7 percent in February, statisticians report.
Energy prices in March were only 3.5 percent higher than in the same month last year, following a 19.1 percent increase in February. Statisticians note that the increase is significantly milder since prices surged in March of last year due to the Russian invasion of Ukraine. Along with a high comparative base from last March, they also highlight government assistance measures for households and businesses and the decline in prices on international markets.
Food prices, on the other hand, were 22.3 percent higher in March than in the same period last year, mainly driven by a 34.6 percent increase in dairy products and eggs. In February, food prices rose by 21.8 percent, and in January by 20.2 percent.
– Households faced a particularly heavy burden in March due to the repeated increase in food prices – emphasized Ruth Brand, president of Destatis, in a statement.
– Inflation has weakened, but it is still at a high level – concluded Brand.
Inflation measured by the harmonized index of consumer prices (HICP) fell to 7.8 percent in March, down from 9.3 percent in the previous month, confirmed Destatis’s preliminary estimate.
On a monthly basis, consumer prices rose by 0.8 percent in March, the same pace as in February. The HICP, however, shows a monthly price increase of 1.1 percent, almost unchanged compared to February.
