German inflation eased in March, helped by a drop in energy and food prices, final data from the federal statistics office showed today.
Inflation in Europe's largest economy slackened to 2.3%, its lowest level since June 2021. German consumer prices, harmonised to compare with other European Union countries, had risen by 2.7% year-on-year in February.
Core inflation in Germany, which excludes volatile food and energy prices, was at 3.3% in March, down from 3.4% in February.
Underlying inflation is closely watched by the European Central Bank to gauge the durability of price pressures.
"In March 2024, food was cheaper for consumers than a year before for the first time since February 2015," said Ruth Brand, president of the statistics office. Food prices went down 0.7% year-on-year.
Energy prices were 2.7% lower in March than in the same month of the previous year. Since the beginning of the year, energy prices have consistently fallen, dragging headline inflation down.
However, core inflation has barely slowed.
Germany's inflation is supported by a rising trend in services, whose prices are increasingly dominated by a sharp jump in wage costs, as well as a rise in rents.
French inflation confirmed at 2.4% in March
Meanwhile, consumer prices in France, rose 2.4% year on year in March, statistics office INSEE said today, confirming preliminary data
Inflation in March was caused mainly by a seasonal increase in manufactured goods prices and a slight increase in tobacco prices, INSEE reported.
Preliminary data had shown France's EU-harmonised inflation figure standing at 2.4%, matching a forecast by analysts in a Reuters poll.
On a monthly basis, prices rose 0.2% in March, having risen 0.9% in February.
Energy prices rose by 3.4% on the year after a 4.3% rise in February, the slower rise reflecting a fall in gas prices and a slowdown in electricity prices.
Food prices in March rose by 1.7%, compared to a 3.6% rise in February, INSEE said, adding that this was the 12th month in a row that food inflation had eased.
Services prices in March rose by 3% compared to 3.2% the previous month.
