Germany: Harmonized inflation falls more than expected but remains above target in March
Latest reading: Harmonized inflation came in at 2.3% in March, which was down from February’s 2.6%. March’s figure marked the lowest inflation rate since September 2024 and fell slightly short of market expectations. Still, the reading exceeded the Euro area average of 2.2% and remained above the ECB’s 2.0% target for the sixth straight month. Looking at the details of the release, plummeting price pressures for transport outweighed faster rises in food and housing costs.
As a result, the trend pointed down mildly, with annual average harmonized inflation coming in at 2.4% in March (February: 2.5%). Meanwhile, consumer price inflation edged down to 2.2% in March from the previous month’s 2.3%.
Finally, harmonized consumer prices increased 0.38% in March over the previous month, slowing down from February’s 0.46% rise.