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Germany's inflation slowed to the weakest rate in four months in March as energy prices declined though food prices and services costs continued to add upward pressure, latest data from Destatis showed on Friday.
The consumer price index rose 2.2 percent year-on-year after a 2.3 percent increase in February. The rate of inflation was the lowest since November when it was at the same level. The flash estimate was unrevised.
Core inflation, which excludes food and energy, slowed to 2.6 percent from 2.7 percent. The initial estimate was 2.5 percent.
Services inflation, the stickiness of which has caused concern for a long time, slowed sharply to 3.5 percent. This was a tad higher than the flash estimate of 3.4 percent. Food price growth was revised up from the initial estimate of 2.9 percent to 3.0 percent, which was faster than February's 2.4 percent. The last time a higher year-on-year increase in food prices was recorded was in January 2024, when they rose 3.8 percent, Destatis said.
Energy prices decreased 2.8 percent after a 1.6 percent fall in the previous months. The harmonized index of consumer prices rose 2.3 percent year-on-year following a 2.6 percent rise in the previous month.
The CPI rose 0.3 percent from the previous month after a 0.4 percent increase in February. This was mainly due to seasonal increases in prices of clothing and package holidays. The HICP rose 0.4 percent from February when it had climbed 0.5 percent.
