Germany's inflation may fall to 7.4% in March 2023

04 Apr '23

1 min read

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Insights

Germany's inflation rate is expected to drop to 7.4 per cent in March 2023 after remaining at 8.7 per cent in January and February 2023.
Consumer prices are expected to grow 0.8 per cent compared to February 2023, while the decline in inflation is attributed to the federal government's relief measures.
Energy prices slowed down to 3.5 per cent in March 2023.

Germany's inflation rate, which measures the change in the consumer price index (CPI) compared with the same month a year earlier, is expected to drop to 7.4 per cent in March 2023, according to the Federal Statistical Office (Destatis). This comes after the inflation rate remained at 8.7 per cent in both January and February 2023.

Consumer prices are expected to increase by 0.8 per cent compared to February 2023. The decrease in the inflation rate can be attributed to the measures taken by the federal government's third relief package, which have reflected in the consumer price index, as per Destatis.

Energy prices, which have been a major factor in the inflation rate, increased considerably since the war in Ukraine started. However, in March 2023, the provisional increase in energy prices slowed considerably to 3.5 per cent, after soaring in March 2022 due to Russia's attack on Ukraine. In February 2023, energy prices had increased by 19.1 per cent compared to February 2022.

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