The consumer price index (CPI) in Germany showed an inflation rate of +7.4% in March 2023 compared to the same month a year earlier, which is slightly lower than the previous two months. The increase in energy product prices slowed considerably to +3.5% year on year in March, down from +19.1% in February and +23.1% in January, but household energy prices continued to rise significantly. Food prices saw a sharp increase of +22.3% year on year in March, with higher prices observed for all food groups, particularly dairy products, eggs, vegetables, bread and cereals, and fish products. When excluding energy and food, the inflation rate was still high at +5.8% in March.
The prices of goods (total) were up +9.8% in March 2023 compared to the same month a year earlier, with non-durable consumer goods showing the largest increase of +11.9%, mostly driven by rising food prices. Prices of durable consumer goods increased by +6.2% on the same month of the previous year. The President of the Federal Statistical Office, Ruth Brand, noted that households felt the impact of rising food prices in March, and although the rate of inflation has slowed, it remains at a high level.
Overall, the inflation rate in Germany remained elevated in March 2023, although it showed a slight decrease compared to the previous months. The prices of energy products and food continued to rise significantly, and the inflation rate excluding energy and food also remained high. The situation with inflation in Germany will continue to be monitored closely.