Germany inflation rises to 2.7% in March
Germany’s annual inflation rate was confirmed at 2.7% in March, its highest level since January 2024, driven largely by a sharp rise in energy prices following global supply disruptions linked to the Iran conflict, according to official data from Destatis.
The reading matched both preliminary estimates and market expectations, but reinforced concerns that recent energy shocks are feeding back into consumer prices across Europe’s largest economy, News.Az reports, citing Turkish media.
Energy costs were the main driver of inflation, rising 7.2% year-on-year—the first annual increase since late 2023. Motor fuel prices surged by 20%, while heating oil prices jumped 44.4%, reflecting tight global supply conditions.
On a monthly basis, consumer prices increased by 1.1% in March, with energy costs alone climbing 7.7% as fuel and heating expenses continued to rise.
Food inflation slowed slightly to 0.9% annually, easing compared with the previous month. However, underlying price pressures remained steady, with core inflation—excluding food and energy—holding at 2.5%.
Services continued to be a key inflation driver, rising 3.2% year-on-year, with transport, rent, and social services among the strongest contributors. Prices for goods increased by 2.3% over the same period.
The inflation uptick comes amid broader volatility in global energy markets after conflict-related disruptions affected shipping routes through the Strait of Hormuz, a critical passage for global oil and LNG flows.
Brent crude briefly surged toward $120 per barrel following concerns over supply constraints before stabilizing near $100, though ongoing uncertainty has kept energy markets sensitive even after a reported ceasefire.
News.Az
By Aysel Mammadzada
