INFLATION in Germany slowed noticeably in March, preliminary estimates by the statistical office showed, reflecting a significantly milder rise in energy prices compared with the high level at the beginning of last spring.

Consumer prices in Europe's largest economy rose by 7.4 percent in March compared with the same period last year, preliminary estimates by the statistical office show.

Annual inflation is thus now noticeably lower than in January and February, when it reached 8.7 percent, Destatis said.

Compared with February, prices were higher by 0.8 percent, according to preliminary and currently available data, showing a steady pace of growth on a monthly basis.

Food 22 percent more expensive

In February, energy prices were higher by 19.1 percent, and in January by 23.1 percent, the statistical office tables show.

Along with the high comparison base in March 2022, statisticians explain the significantly milder price increase by government support measures for households and companies.

For food, statisticians estimate that it became 22.3 percent more expensive compared with March last year, somewhat more strongly than in February.

For goods, they estimate that prices rose by 9.8 percent year-on-year, after a 12.4-percent increase in February.

According to initial estimates, service prices rose by 4.8 percent, almost the same as in the second month of this year.

The Harmonised Index of Consumer Prices (HICP), which is used to facilitate comparison with other European Union countries, showed a price increase in March of 7.8 percent compared with the same month last year, noticeably weaker than in February, when it reached 9.3 percent.

On a monthly basis, according to the HICP, prices in March rose by 1.1 percent, almost the same as in the previous month, preliminary Destatis data show.

Source: index.hr