German inflation eased to 7.4% in March

BERLIN  -Inflation in Germany eased to 7.4 percent in March, mainly thanks to government measures to bring down energy prices, final figures showed on Thursday.

The data from federal statistics agency Destatis confirm a downward trend since annual inflation peaked at 10.4 percent in Europe’s biggest economy in October — revised to 8.8 percent according to a new methodology.

The slowdown has been helped by easing energy prices as a result of European efforts to source liquefied natural gas (LNG) and a huge government relief package in Germany.

Berlin has committed 200 billion euros ($220 billion) to help bring energy prices down until 2024, including a cap on gas and electricity prices.

Energy prices rose by only 3.5 percent year-on-year in March, after jumping by 19.1 percent in February and 23.1 percent in January.

However, food prices continued to rise in March by 22.3 percent, up from 21.8 percent in February and 20.2 percent in January.

“For private households, the renewed increase in food prices was particularly significant in March,” said Ruth Brand, president of Destatis, in a statement.

Inflation remains well above the European Central Bank’s target of two percent.

The ECB has already raised its key rates by 3.5 percentage points since July and does not intend to stop there, despite the recent turmoil in the banking sector.