Inflation Rate in Germany Expected to Be 7.4% in March 2023 According to Provisional Data

April 4, 2023

Consumer price index in Germany, March 2023:
+7.4% on the same month a year earlier (provisional)
+0.8% on the previous month (provisional)

Harmonised index of consumer prices, March 2023:
+7.8% on the same month a year earlier (provisional)
+1.1% on the previous month (provisional)

The inflation rate in Germany is expected to be +7.4% in March 2023. It is measured as the change in the consumer price index (CPI) compared with the same month a year earlier. After standing at +8.7% in both January and February 2023, the inflation rate is now substantially lower. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that consumer prices are expected to increase by 0.8% on February 2023.

Energy and food prices, in particular, have increased considerably since the war started in Ukraine and have had a substantial impact on the inflation rate. In March 2023, food prices continued to show above-average growth (+22.3%) compared with the same month of the previous year. In contrast, the increase in energy prices slowed considerably (+3.5%) after energy prices had soared in March 2022 when Russia attacked Ukraine (February 2023: +19.1% on February 2022). Apart from this base effect, which is due to the high index level of March 2022, the measures of the Federal Government’s third relief package reflected in the consumer price index have contributed to the development.

Source: DESTATIS
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