According to the final report from the Federal Statistical Office (Destatis), in March, consumer prices rose by 2.2% per year, as expected, after increasing by 2.3% in February. Destatis said that the development of energy prices had a downward effect on inflation. By contrast, the rise in food prices accelerated again. In addition, above-average increases in service prices, in particular, continued to drive up inflation.
On a monthly basis, consumer prices rose by 0.3%, as expected, after increasing by 0.4% in February.
The data also showed that in March, energy prices fell by 2.8% per year after falling by 1.6% in the previous three months. The prices of motor fuels (-4.6%) and household energy (-1.6%) were down year on year, with consumers benefiting from lower prices for electricity (-2.1%), firewood, wood pellets and other solid fuels (-3.5%) and heating oil (-8.4%). By contrast, natural gas (+3.5%) and district heating (+9.7%) were more expensive than a year earlier. Food prices were up 3.0% year on year, after +2.4% in February. The last time a higher increase in food prices was recorded was in January 2024 (+3.8% per annum). Meanwhile, excluding energy prices, the inflation rate stood at +2.7% in March. The inflation rate excluding food and energy, often referred to as core inflation, was also +2.6% in March.
Destatis said that in March, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - rose by 0.4% on a monthly basis and by 2.3% per year. In February, HICP increased by 0.5% m/m and by 2.6% per annum.