The overall rise in consumer prices in Germany accelerated again in March, largely driven by tensions in the Middle East. According to the Federal Statistical Office, the annual inflation rate for the month is projected at 2.7 %, compared with 1.9 % in February. On a month‑by‑month basis, prices are expected to be 1.1 % higher than in February.

Core inflation-exluding food and energy-remained steady at 2.5 %, holding the same level as the two previous months and, for the first time in a long while, falling below the headline figure. Energy costs were 7.2 % higher than a year earlier, marking the first quarterly increase for this sector since December 2023. Food prices rose 0.9 % year‑on‑year, while services climbed 3.2 %.