German consumer price growth slowed in March

According to the report from Federal Statistical Office (Destatis), the inflation rate in Germany, measured as the year-on-year change in the consumer price index, stood at +1.4% in March 2020. This means that the inflation rate was down (January and February 2020: +1.7%).

The prices of goods (total) rose by 1.3% from March 2019 to March 2020, which was below average. It was mainly due to a decrease of energy product prices by 0.9%. The sharpest decline was recorded for heating oil prices (-19.6%) due to the oil price slump in the world market observed since the beginning of the year. Consumers also benefited from lower motor fuel prices (-3.3%). Excluding heating oil and motor fuel prices, the inflation rate would have been +1.6% in March 2020.

The prices of services (total) were up 1.4% in March 2020 compared with March 2019. Net rents exclusive of heating expenses, which are important as they account for large part of household final consumption expenditure, rose by 1.5%.

Compared with February 2020, the consumer price index rose by 0.1% in March 2020. However, energy prices declined by 2.2%, especially prices of heating oil (-10.1%) and motor fuels (-4.7%). In contrast, seasonally higher prices had to be paid for clothing (+4.0%).