German inflation falls to lowest level since 2021

German inflation fell in March, matching the lowest level since mid-2021, according to secondary estimates released on Friday by the Federal Statistical Office, Destatis.

The harmonised index of consumer prices rose at a year-on-year rate of 2.3% last month, in line with the preliminary estimate and analysts' estimates.

This was down from 2.7% in February and 3.1% in January, matching the same level as November, which was the lowest reading seen since June 2021.

The drop in the harmonised inflation rate – which uses the same methodology as other EU countries to ensure fair comparisons between member states – was the result of a 2.7% year-on-year fall in energy prices and a 0.7% decline in food.

In fact, March marked the first time since February 2015 that foods prices were lower than the corresponding month of the previous year, Destatis said.

Core inflation, which excludes food and energy prices, was confirmed at 3.3% in March, easing from 3.4% in February.