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German inflation-watchers can enjoy their Easter break safe in the knowledge that consumer price growth in Europe’s largest economy is back down to tolerable levels.

Harmonised annual inflation in March fell back from a four year high of 2.2 per cent to 1.5 per cent, according to a final reading from Destatis this morning and in line with a flash estimate.

A sharp acceleration in Germany’s inflation rate at the start of the year led to growing calls in the country for the European Central Bank lift its foot off the easing pedal after two years of stimulus measures.

But March’s inflation reading pointed to softer rises in energy prices (up 5.1 per cent from 7.2 per cent) and a more subdued jump in food prices after a triple digit rise in the cost of lettuce in February.

Inflation across Europe has moderated in March due to the later timing of Easter which has helped push down airfares. Travel costs were down 7.1 per cent in Germany, said Destatis.

Copyright The Financial Times Limited 2017. All rights reserved.

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