German Inflation Surges Amidst Energy Price Hike

Germany experienced a rise in inflation to 2.8% year-on-year in March, driven by soaring energy prices amid the Iran conflict. This EU-harmonised rate aligns with forecasts, marking a significant leap from February's 2.0%. Core inflation remained steady at 2.5%, unaffected by food and energy price volatility.

Germany's inflation rate accelerated to 2.8% in March, according to preliminary data from the federal statistics office. The uptick, driven primarily by rising energy costs, corresponds with analyst projections and follows a 2.0% rate in February.

Energy prices jumped by 7.2% compared to the same month in the previous year, marking the first increase since December 2023 and coinciding with geopolitical tensions related to the Iran war.

Despite the surge in overall inflation, core inflation, which excludes the volatile sectors of food and energy, remained stable from the previous month at 2.5%.

(With inputs from agencies.)