FX.co ★ German Inflation Rate Confirmed at 4-Month Low

In March 2025, Germany's annual inflation rate was confirmed at 2.2%, experiencing a slight decrease from February's 2.3%, marking the lowest level since November of the previous year. This easing is primarily attributed to a significant slowdown in services inflation, which decreased to 3.5% from 3.8% the month prior, alongside a more pronounced drop in energy costs, which declined by 2.8% compared to February's 1.6% reduction. This decline in energy prices was mainly driven by reductions in the costs of motor fuels, solid fuels, and heating oil. Conversely, food inflation saw an increase, rising to 3.0% from 2.4%. Core inflation, which excludes volatile elements like food and energy, also decelerated to 2.6%. On a month-to-month basis, consumer prices rose by 0.3% in March, following a 0.4% increase in February. Additionally, the EU-harmonised inflation rate saw a year-over-year increase of 2.3%, down from February's 2.6% rise, while monthly harmonised consumer prices increased by 0.4%, after a 0.5% gain the previous month.