As of: April 3, 2024, 1:08 p.m
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Inflation has also weakened in the euro zone. © Sina Schuldt/dpa
Inflation is falling not just in Germany, but in the entire Eurozone. The decline is even greater than experts expected.
Luxembourg - Inflation in the euro zone weakened more than expected in March. Consumer prices rose by 2.4 percent compared to the same month last year, as the Eurostat statistics office announced on Wednesday in Luxembourg according to an initial estimate. Economists had expected an average rate of 2.5 percent. A year ago inflation was 6.9 percent. Economists expect the ECB to cut its key interest rates in June.
It was the third consecutive decline in inflation. In February, inflation in the euro zone was 2.6 percent and in January it was 2.8 percent. Compared to the previous month, consumer prices rose by 0.8 percent in March. Economists had expected an increase of 0.9 percent.
The price development is moving closer to the target of the European Central Bank (ECB), which is aiming for an annual inflation rate of two percent in the medium term. The ECB had raised interest rates sharply in the fight against high inflation. Inflation reached a record high of 10.7 percent in autumn 2022.
Core inflation also fell further in March, excluding volatile prices for energy, food and beverages. The rate fell to 2.9 percent from 3.1 percent in the previous month. Economists had expected 3.0 percent. Core inflation reflects fundamental inflation and, in the opinion of many economists, represents the inflation trend better than the overall rate.
The price increase for food and beverages weakened noticeably. Prices here rose by 2.7 percent after climbing by 3.9 percent in February. Energy was once again cheaper than in the same month last year. However, the year-on-year decline weakened, from 3.7 percent in the previous month to just 1.8 percent. In the Eurozone, Croatia has the highest inflation rate at 4.9 percent. It was lowest in Latvia, where it was 0.3 percent. In Germany, consumer prices measured by the HICP rose by 2.3 percent year-on-year. dpa