2024-04-02 13:48:25
Inflation in Germany reached its lowest level since April 2021 in March. It stood at 2.2% over one year, a level similar to that of France (2.3%).
As in France, inflation in Germany is fading. The general rise in prices continued to decline in March to 2.2% year-on-year, approaching the 2% target set by the European Central Bank (ECB) for the euro zone, according to provisional figures published on Tuesday April 2. The consumer price index fell by 0.3 percentage points compared to February in Europe’s largest economy, to its lowest level since April 2021, the statistics office Destatis said in a press release.
The slowdown is stronger than expected by experts from the financial analysis tool Factset, who expected a slighter decline at 2.3%. Over one month, prices increased by 0.4%. The movement therefore continues while the increase in consumer prices still amounted to 5.9% on average in 2023, after a peak of 8% in October 2022, caused by the historic rise in energy costs in the wake of the war in Ukraine.
Food prices falling
First factor in this slowdown: food costs less compared to a year ago, a first since 2015. The prices of food products fell by 0.7% compared to March 2023. In addition, the prices of energy, the leading cause of inflation for two years, were 2.7% lower than in March 2023.
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Will this calm, widespread in the euro zone, be enough to lower rates? The ECB will provide an update at the Governing Council meeting in the coming days. She has so far suggested that a first rate cut would not take place before June.
IN with AFP
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