Inflation in Germany remains at a high level despite a slowdown in March. Consumer prices increased by 7.4 percent compared to the same month last year, as reported by the Federal Statistical Office in Wiesbaden. The Wiesbaden authority thus confirmed an initial estimate.
In January and February, a rate of 8.7 percent was recorded. For the first time since August 2022, the inflation rate in March was below the 8 percent mark. At that time, inflation was 7.0 percent.
“For private households, the renewed increase in food prices had a particularly significant impact in March,” explained Ruth Brand, President of the Federal Statistical Office. Compared to the same month last year, food prices increased by 22.3 percent. This intensified the rise in prices.
State brakes on gas and electricity influenced prices.
By contrast, the rise in energy prices weakened significantly in March. Energy prices rose by 3.5 percent compared to the same month of the previous year after growth of 19.1 percent in February. The effect was noticeable that energy prices had skyrocketed a year ago after the Russian war of aggression. The government price brakes for gas and electricity, which have been in effect since March 1, 2023, have also had an impact on prices.
Higher inflation rates reduce the purchasing power of consumers because they can then afford less for one euro.
Compared to the previous month of February, consumer prices in March rose by a total of 0.8 percent.
