The cost of living in Germany increased by 1.4 percent on a 12-month basis last month, down from 1.5 percent in February, the federal statistics office Destatis calculated in preliminary data.
On a monthly basis, the consumer price index (CPI) rose by 0.5 percent in March from February.
The last time the annual inflation rate was lower was in December 2010, when it was just 1.3 percent.
Using the Harmonised Index of Consumer Prices (HICP), the ECB's inflation yardstick, the rate of inflation in Germany stood at 1.8 percent in March, unchanged from February, Destatis said.
The ECB defines price stability as increases in HICP of close to but just below 2.0 percent.
Preliminary inflation data are calculated using consumer price data for six of Germany's 16 federal states.
Final data, based on statistics for all 16 states, are scheduled to be published on April 11.
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