Germany's Inflation Rate Drops Slightly in March

The Federal Statistical Office (Destatis) released its preliminary report on Monday, indicating a minor decrease in Germany's annual inflation rate to 2.2% in March, down from 2.3% in February.

Monthly and Harmonized CPI Insights

On a monthly basis, the Consumer Price Index (CPI) experienced a 0.3% increase. Meanwhile, the Harmonized Consumer Price Index (HCPI), which excludes food and energy, showed a 2.3% year-on-year rise and a 0.4% month-on-month increase.

Food and Energy Prices Diverge

Food prices saw a 2.9% increase compared to March 2024, whereas energy prices dropped by 2.8%, highlighting contrasting trends in essential goods costs.