Print Magazine
Brussels Morning Newspaper
Saturday, September 23, 2023
No Result
View All Result
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
No Result
View All Result
Home Economy

German inflation rises more than expected in March

Nikola Kiš by Nikola Kiš
31 March 2023
in Economy
Estimated inflation in Germany highest in decades
Share on FacebookShare on Twitter

Belgium, (Brussels Morning Newspaper) German inflation rose more than expected in March despite lower energy prices, preliminary Destatis data showed on Thursday.

Persistent inflation in Germany is adding pressure on the European Central Bank (ECB) to continue tightening its monetary policy, according to Reuters reported on Thursday.

Destatis records showed that harmonized consumer prices increased 7.8% annually in March, exceeding analysts’ expectations of 7.5%, while monthly inflation stood at approximately 1.1%, higher than the 0.8% predicted by analysts.

ING Group economist Carsten Brzeski noted, “there are still few if any signs of any disinflationary process outside of energy and commodity prices.”

He predicted that the ECB will implement two more interest rate hikes of 25 basis points each “as long as the current banking crisis remains contained” and concluded, “with any further rate hike, the risk that something breaks increases.”

Robert Habeck, German Minister for Economic Affairs and Climate Action, noted that annual inflation has slowed down from 8.7% in January and February to 7.8% in March.

“I won’t speak of a reversed trend from February to March, but the decline is strong,” he stated at an energy conference in Berlin on Thursday. Meanwhile, food prices in Germany continued to soar, increasing 22.3% annually in March.

Role of energy prices

The growth of prices slowed down in March entirely due to slower growth of energy prices, which stood at 3.5% on the annual level. Destatis pointed out that the government’s measures included in the third energy relief package helped to slow down inflation.

While annual inflation figures are dropping across the eurozone as the discrepancy between last year’s energy prices shrinks, core inflation remains higher than expected.

Destatis does not release core inflation figures, but Commerzbank estimates that it stood at 5.9% in March, in contrast with ECB’s target of 2%.

This raises concerns at the ECB that soaring energy prices have spilled over via second-round effects and made it difficult to rein in inflation.

ECB Executive Board member Isabel Schnabel noted on Wednesday that energy prices have dropped to levels before the war in Ukraine, but warned that the spike drove companies to increase margins and workers to call for higher wages, which has effects on inflation.

Tags: Brussels LatestEuropean UnionMain-Slider
Follow Brussels Morning
Facebook Twitter Youtube Linkedin

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

More Info

  • About Us
  • Advertising
  • Cookie Policy
  • Contact Us
  • FAQ
  • Jobs

Categories

  • Belgium News
  • Brussels
  • Culture and Society
  • Economy
  • EU Institutions
  • Commission
  • Council
  • Parliament
  • Europe
  • Features
  • Health & Fitness
  • In Depth
  • Ambassador’s Corner
  • Europe With Transparency
  • Place de la Bourse
  • Southeast Europe
  • Sustainable Perspective
  • The American Angle
  • The Macro-Economist
  • Member States
  • Opinion
  • Our pick
  • Uncategorised
  • World
  • Diplomacy
  • Middle East Eye
  • US Elections
  • Join Our Newsletter

    Brussels Morning Newspaper – All Rights Reserved © 2020

    No Result
    View All Result
    • Home
    • About Us
    • Brussels Bubble
      • Parliament
      • Commission
      • Council
    • Wider Europe
      • Member States
    • World
    • Business & Society
    • Europe With Transparency
    • Culture & Society
    • Policy Talks
      • Place de la Bourse
      • The Macro-Economist
      • Sustainable Perspective
      • Ambassador’s Corner
      • The American Angle
      • Southeast Europe
    • Print Magazine

    Brussels Morning Newspaper - All Rights Reserved © 2020

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
    Cookie settingsACCEPT
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT