FX.co ★ German Inflation Rate Slows to 4-Month Low

Germany experienced a deceleration in consumer price inflation, which eased to 2.2% in March 2025, the lowest figure recorded since November 2024, in line with market forecasts, according to preliminary estimates. This decrease was largely attributed to a notable slowdown in services inflation, which decreased to 3.4% from February's 3.8%, as well as a further reduction in energy costs, which saw a 2.8% drop compared to a 1.6% decline the month prior. Conversely, food inflation saw a slight uptick, rising to 2.9% from 2.4%. Excluding the volatile categories of food and energy, core inflation also decreased, reaching 2.5%, the lowest level since June 2021. Month-on-month, consumer prices increased by 0.3% in March, following a 0.4% rise in February.