Inflation in Germany continued to decline in March and reached the lowest level in the last three years.
Inflation was 2.2 per cent compared to the same month last year, the German Federal Statistical Office announced on Friday. The inflation value below this level was last measured as 2 per cent in April 2021. The annual inflation rate was 2.5 percent in February and 2.9 percent in January. Monthly inflation is at 0.4 per cent.
Energy and food prices fall
According to the announced inflation data, consumers in Germany were able to access food products 0.7 per cent cheaper compared to last year. In particular, it was reported that the price of fresh vegetables decreased by 20 per cent compared to last year. The price decrease in dairy products is 5.5 per cent.
On the other hand, sugar, jam, honey and other sugar products became 8.4 percent more expensive, fresh fruit 4.2 percent more expensive and bread and cereals 3 percent more expensive. The most significant price increase in food was measured in olive oil with 54.1 per cent. Crop failure in southern Europe is cited as the main reason for this. Despite the fall in food prices, the price of services rose by 3.7 per cent.
Despite the expiry of the energy price cap at the beginning of this year and the increase in the carbon tax, energy prices fell by 2.7 per cent in March compared to last year.
Experts expect average inflation to be 2.3 per cent this year, compared with 5.9 per cent at the end of last year.
