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Checkout in the supermarket: Inflation continues to decline
Photo: Julian Stratenschulte / dpa
Cheaper energy and food pushed inflation in Germany to its lowest level in almost three years in March. Consumer prices rose by only 2.2 percent compared to the same month last year, as the Federal Statistical Office announced its estimate on Tuesday. “This is the lowest value since April 2021,” said the statisticians. Economists interviewed by the Reuters news agency had predicted exactly this. In February the inflation rate was 2.5 percent. From February to March prices rose by 0.4 percent.
The falling inflation was mainly due to cheaper energy: it cost an average of 2.7 percent less than in March 2023. Food prices fell for the first time since February 2015, by 0.7 (February: +0.9) percent. 3.7 (February: 3.4) percent more were charged for services than a year before. The so-called core inflation – which excludes energy and food prices – fell slightly to 3.3 percent.
German consumers can also hope for further falling inflation in the near future, because fewer companies want to raise their prices in the next few months: the barometer for their price expectations fell to its lowest level in three years in March, according to the Munich Ifo Institute from his company survey. "The inflation rate is likely to fall below the two percent mark in the summer," said Ifo economics chief Timo Wollmershäuser: "From a German perspective, there is nothing to speak against the ECB cutting interest rates soon."
The Frankfurt monetary authorities are aiming for an inflation rate of two percent in the euro zone. According to a survey by the Reuters news agency, a large majority of economists currently expect a first interest rate cut in June.
mik/Reuters