Germany – Services inflation slowing down
The German inflation rate continued its downward trend in March, falling from 2.3% to 2.2%.
Dr Ralph Solveen
Commerzbank Economic Research
03/31/2025
In contrast to the past, this was not primarily due to the price development of energy and food. Rather, the core inflation rate, excluding these two often highly volatile subcomponents, fell from 2.7% to 2.5%. It is apparent that companies in the service sector in particular are finding it increasingly difficult to pass on higher labor costs to their customers in light of the weak economy.
Inflation rate only marginally above ECB target
As widely expected, the German inflation rate fell further in March and, at 2.2%, is now close to the ECB's inflation target. Lower energy prices and higher food prices have largely offset each other. Rather, excluding these two subcomponents, core inflation has fallen from 2.7% to 2.5%. This is its lowest level since mid-2021.
For full text see attached PDF-Version.
