Inflation slowed in Germany

Inflation in Germany slowed down in March, reaching a level of 2.3% compared to 2.6% in February 2024. This brings Germany closer to the European Central Bank’s inflation target of 2%.

Economists surveyed by Reuters had anticipated that Germany’s harmonized inflation rate would be 2.4% in March, down from 2.7% in February.

Preliminary data revealed that inflation decelerated in six economically significant German states in March. In North Rhine-Westphalia, the most populous state in Germany, the inflation rate slowed to 2.3% from 2.6% in February.

Similarly, in Bavaria, the inflation rate eased to 2.3% from 2.6% in February. In Brandenburg, it declined to 2.8% from 3.5%, while in Saxony, it dropped to 2.5% from 3.0%. In Baden-Württemberg, inflation decreased to 2.3% from 2.7%, and in Hesse, it declined to 1.6% from 2.1%.

The Ifo Institute reported that German business price expectations dipped in March to their lowest level in three years, indicating an anticipation of inflation falling below the European Central Bank’s target level in the coming months.