Inflation in Germany eases despite soaring food prices
Inflation in Germany eased in March, even though some prices have been going up significantly over the last few months, according to data published Thursday.
Inflation in Germany eased to 7.4 percent in March, mainly thanks to government measures to bring down energy prices, final figures showed on Thursday.
The data from federal statistics agency Destatis confirm a downward trend since annual inflation peaked at 10.4 percent in Europe's biggest economy in October -- revised to 8.8 percent according to a new methodology.
The slowdown has been helped by easing energy prices as a result of European efforts to source liquefied natural gas (LNG) and a huge government relief package in Germany.
Berlin has committed €200 billion to help bring energy prices down until 2024, including a cap on gas and electricity prices.
READ ALSO: Germany's planned hardship fund to help with energy bills
Energy prices rose by only 3.5 percent year-on-year in March, after jumping by 19.1 percent in February and 23.1 percent in January.
However, food prices continued to rise in March by 22.3 percent, up from 21.8 percent in February and 20.2 percent in January.
"For private households, the renewed increase in food prices was particularly significant in March," said Ruth Brand, president of Destatis, in a statement.
READ ALSO: How much will grocery prices in Germany go up in 2023?
Inflation remains well above the European Central Bank's target of two percent.
The ECB has already raised its key rates by 3.5 percentage points since July and does not intend to stop there, despite the recent turmoil in the banking sector.
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Inflation in Germany eased to 7.4 percent in March, mainly thanks to government measures to bring down energy prices, final figures showed on Thursday.
The data from federal statistics agency Destatis confirm a downward trend since annual inflation peaked at 10.4 percent in Europe's biggest economy in October -- revised to 8.8 percent according to a new methodology.
The slowdown has been helped by easing energy prices as a result of European efforts to source liquefied natural gas (LNG) and a huge government relief package in Germany.
Berlin has committed €200 billion to help bring energy prices down until 2024, including a cap on gas and electricity prices.
READ ALSO: Germany's planned hardship fund to help with energy bills
Energy prices rose by only 3.5 percent year-on-year in March, after jumping by 19.1 percent in February and 23.1 percent in January.
However, food prices continued to rise in March by 22.3 percent, up from 21.8 percent in February and 20.2 percent in January.
"For private households, the renewed increase in food prices was particularly significant in March," said Ruth Brand, president of Destatis, in a statement.
READ ALSO: How much will grocery prices in Germany go up in 2023?
Inflation remains well above the European Central Bank's target of two percent.
The ECB has already raised its key rates by 3.5 percentage points since July and does not intend to stop there, despite the recent turmoil in the banking sector.
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