Germany…the largest decline in inflation in more than two years

Inflation in Germany fell slightly more than expected in March, supported by lower energy prices, preliminary data from the Federal Statistical Office showed..

Inflation in Europe’s largest economy slowed in March to 2.3 percent, its lowest level since July 2021. Consumer prices, harmonized for comparison with other EU countries, rose 2.7 percent year-on-year in February..

Economists are paying close attention to German inflation data, as the country publishes its figures a day before the release of inflation data in the euro zone tomorrow, Wednesday.

“The consensus message from the data in Germany, France, Italy and Spain is that headline inflation in the euro area will be significantly below average this week,” said Klaus Vestesen, chief eurozone economist at Pantheon Macroeconomics.“.

A Reuters poll of economists showed that the inflation rate in the euro zone is expected to reach 2.6 percent in March, unchanged from the previous month.

(Sky News)