Inflation slowed down in Germany in March

In March, the annual consumer price index dropped to a seven-month low of 7.4 percent from 8.7 percent in February.
According to Destatis, the reason for the decrease in inflation in March is primarily the base effect. Energy prices skyrocketed a year ago because of the war in Ukraine. In this way, the effect of the increased energy prices at that time appears for the first time in the base.

The price of energy products in March was 3.5 percent higher than a year earlier. The price of energy industry products increased by 19.1 percent in February and by 23.1 percent in January.

In March, food prices increased by 22.3 percent compared to the same month of the previous year, after rising by 21.8 percent in February.

In Germany, consumer prices rose by 0.8 percent month-on-month in March, after a similar rise in February.