World Economy

German Inflation Creeps Higher

German Inflation Creeps HigherGerman Inflation Creeps Higher

Inflation in Germany, Europe’s biggest economy, crept higher in March, final data showed Wednesday. The national consumer price index (CPI) rose by 0.3% year-on-year in March, up from 0.1% in February, the federal statistics office Destatis said in a statement.

The Harmonized Index of Consumer Prices (HICP) – which is the yardstick used by the European Central Bank – was also back in positive territory, rising by 0.1% year-on-year in March, Yahoo news reported.

This compared with a drop of 0.1% the previous month.

Nevertheless, both numbers are way below the ECB’s target of 2%, which the central bank defines as price stability.

Today’s data confirm a preliminary estimate released at the end of last month.

Meanwhile, the German economy ministry said that growth likely slowed slightly in the first quarter of this year, but added that it expects the upturn to continue at a moderate pace.

“The high rate of growth at the end of last year will likely not be achieved though,” the ministry said in its monthly report.

The German economy grew 0.7% on the quarter between October and December last year.

The confluence of low inflation and rising wages in Germany has been a boon for private consumption, where indexes of consumer confidence have risen to their highest level in 13 years, DW said.

A weak euro, tempered by the European Central Bank’s massive bond-purchasing scheme that this month began flooding eurozone markets with freshly printed money, has also boosted German exports as manufacturers find it easier to sell their goods abroad.