Inflation in Germany falls to its lowest level in three years
Annual inflation in Germany fell to 2.2% in March, the lowest level since April 2021. Food prices became cheaper compared to last year, and energy prices decreased despite the end of the price cap policy. Experts expect inflation to average 2.3% this year.
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Germany saw inflation fall to its lowest level in three years in March.
According to the Federal Statistical Office of Germany, inflation in March was recorded at 2.2% compared to the same period last year. This rate is the lowest inflation value seen since April 2021, when it was measured at 2%. Annual inflation was 2.5% in February and 2.9% in January. The monthly inflation rate was 0.4%.
Looking at changes in food product prices, it was observed that German consumers purchased food products on average 0.7% cheaper than last year. Fresh vegetable prices saw a 20% drop compared to last year. Dairy product prices decreased by 5.5%.
Conversely, prices for sugar, jam, honey, and other sugary products increased by 8.4%, fresh fruit prices by 4.2%, and bread and cereal product prices by 3%. Among food products, the largest price increase was observed in olive oil at 54.1%, with the crop shortage in Southern Europe cited as the main reason for this increase. Despite this decline in food prices, service prices rose by 3.7%.
As for energy prices, despite the end of the price cap policy at the beginning of the year and the increase in carbon tax, energy prices decreased by 2.7% in March compared to last year.
According to forecasts by expert institutions, the average inflation, which was 5.9% at the end of last year, is expected to be 2.3% this year.