Germany’s consumer price inflation eased further to 7.4% year-on-year in March 2023, down from 8.7% in the previous two months. Market expectations were 7.3%. The rate hit its lowest level since August 2022, but remained well above the ECB’s target of 2.0 percent. Energy inflation slowed sharply to 3.5 percent from 19.1 percent in February. However, food prices still remain elevated, increasing at a faster 22.3 percent, compared with a 21.8 percent rise the month before.
At the same time, services inflation picked up slightly to 4.8 percent from 4.7 percent, with rent prices advancing 2.0 percent, the same pace as in February. The EU-harmonized annual inflation rate also slowed less than expected to 7.8 percent in March from 9.3 percent in the previous period.
The lower prices should bring a smile to the ECB. However, on a monthly basis, consumer prices rose 0.8% in February. Inflation remained well above the European Central Bank’s target of about 2%.
From The TradersCommunity News Desk