Inflation in Germany remains high despite the slowdown in March. According to the Federal Statistical Office in Wiesbaden, consumer prices rose by 7.4% compared to the same month last year.
In January and February, inflation was recorded at 8.7%. For the first time since August 2022, its level in March was below 8%. Then, inflation was set at 7.0%.
Energy prices fall
“For private households, the rebound in food prices was particularly strong in March,” said Ruth Brand, president of the Federal Statistical Office. Compared to the same month last year, food prices increased by 22.3% – thus, the growth curve continued its upward trend.
On the other hand, the rise in energy prices weakened markedly in March. Compared to the same month last year, they increased by 3.5%, after rising 19.1% in February. A positive role in this regard has been played by the state curb on gas and electricity prices, in force since March 1 and with retroactive effect.
Higher inflation reduces the purchasing power of consumers, because in this case they can afford one euro less. Compared to February, consumer prices in March increased by 0.8% in total.
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