Germany’s consumer price inflation accelerated in March mainly due to higher energy prices, provisional data from Destatis showed on Tuesday.
Consumer prices rose 1.7 percent year-on-year in March, faster than the 1.3 percent rise in February. A similar higher rate was last seen in January 2020. The annual rate matched economists’ expectations.
On a monthly basis, consumer prices gained 0.5 percent, as expected, but slower than the 0.7 percent increase seen in February.
Inflation based on the EU measure of HICP, advanced to 2 percent in March from 1.6 percent in February. The HICP rate also came in line with economists’ expectations.
On month, the HICP gained 0.5 percent, following February’s 0.6 percent rise. Final data is due on April 15.
Headline inflation continued its upward trend in March and will continue to do so in the coming months, Carsten Brzeski, an ING economist, said. The European Central Bank’s commitment to look through higher inflation prints comes not a moment too soon.
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