Inflation in Germany falls to 7.4 percent in March

inflation

The European Central Bank is aiming for an inflation rate of two percent for the euro area.

(Photo: dpa)

Frankfurt The inflation rate in Germany fell in March. Consumer prices increased by 7.4 percent compared to the same month last year. This was announced by the Federal Statistical Office on Thursday based on a preliminary estimate. The main reason was a significantly lower rise in energy prices.

Economists had previously expected a decline to 7.3 percent. In February, the rate was 8.7 percent. The figures fuel the debate about the future course of the European Central Bank (ECB). In mid-March, it raised the key interest rate in the euro area by half a percentage point to 3.5 percent.

At the same time, central bank head Christine Lagarde left the further course open. Investors have recently adjusted their expectations with regard to further interest rate developments. Unlike a few weeks ago, they are now expecting the first interest rate cuts as early as the beginning of 2024.

Proponents of a further tightening of monetary policy refer above all to core inflation adjusted for energy and food prices. It rose to a new record of 5.6 percent in the euro area in February.
More: Lagarde fights against loss of confidence

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