Inflation rate: Inflation in Germany is lower than it has been for three years

The prices for food and energy have fallen Inflation in Germany in March fell to its lowest level in around three years. According to the Federal Statistical Office, the Consumer prices in March 2.2 percent above the level of the same month last year. The authority thus confirmed preliminary data.

The rate was as low as it was last in May 2021, which was also 2.2 percent. The value was previously lower in April 2021 at 2.0 percent. In February of the current year the inflation rate was 2.5 percent and in January it was 2.9 percent.

“The price situation for energy and food dampened the inflation rate for the second month in a row. In March 2024, food was cheaper for consumers for the first time since February 2015 than a year earlier,” said head of the authority Ruth Brand. Consumers paid 0.7 percent less for food than a year earlier.

Fresh vegetables in particular became significantly cheaper at minus 20.1 percent, and dairy products were also cheaper (minus 5.5 percent). However, olive oil (a good 54 percent) as well as fruit and bread became significantly more expensive.

Energy products and food curb inflation

Energy products fell by 2.7 percent year-on-year – despite the energy price brakes that expired at the beginning of the year and the higher CO₂ price on fossil fuels. This means that the decline in energy prices that has been observed since the beginning of the year continued and once again had a dampening effect on overall inflation.

Firewood, wood pellets or other solid fuels (minus 10.8 percent), natural gas (minus 9.2 percent) and electricity (minus 8.1 percent) became significantly cheaper. District heating, on the other hand, was significantly more expensive with an increase of 20.6 percent, while fuel was slightly more expensive.

Economists expect another one Decrease in inflation. On average for the year, leading economic research institutes expect inflation to weaken significantly to 2.3 percent after 5.9 percent last year.

Higher inflation rates reduce the purchasing power of consumers. People can afford one euro less. Last year, many consumers restricted themselves and private consumption ceased to be an important economic support.