In March, Germany, the EU’s largest economy, saw a notable slowdown in inflation. The rate slipped to 7.8 percent from 9.3 percent in February, a shift tied largely to lower natural gas prices affecting energy costs. The figures come from Destatis, the German Federal Statistical Office, and are reported through Bloomberg as analysts offered expectations aligned with this trend. (Bloomberg) In the spring month, consumer prices in Germany moved lower, reflecting the easing energy component after a period of sharp rises in late 2022. The March reading of 7.8 percent marks a meaningful deceleration from February and highlights a broader European pattern of easing inflation driven by energy price normalization. (Bloomberg)
Analysts had anticipated a softer increase for March, with most respondents forecasting a 7.5 percent rise in consumer prices across Germany for the first month of spring. The actual outcome, while still above single digits, shows that price pressures cooled more than some experts expected. This discrepancy between forecast and result emphasizes the ongoing volatility in consumer goods and services prices, even as energy prices moved lower. (Bloomberg)
Spain posted an even more pronounced slowdown on March data. The local statistical authorities reported that consumer prices rose only 3.1 percent in March, down from 6 percent in February. Core inflation in Spain remains stubbornly high at 7.5 percent, signaling that while overall inflation has cooled, underlying price pressures persist in certain sectors. The contrast between Germany and Spain underlines the varied inflation trajectory within the euro area. (Bloomberg)