German inflation hits 2.8% in March, matching forecasts

Germany’s inflation accelerated to 2.8% year on year in March, according to preliminary figures released Monday by the federal statistics office.

The reading, harmonised with the European Union’s methodology, rose from 2.0% in February and came in line with economists’ expectations in a Reuters poll.

March figure meets forecast

The EU-harmonised rate is the measure used for comparisons across the bloc.

Monday’s estimate matched the Reuters survey forecast, suggesting the result did not deliver a major surprise to markets.

The March reading marks a clear step up from February’s 2.0% annual pace and provides the first official snapshot of price pressure in Germany for the month.

What to watch next

Final data typically follow preliminary releases, but the latest estimate sets the tone for the euro zone’s largest economy as policymakers assess the path of inflation.

The move higher could add to scrutiny over how quickly price pressures are easing, even as the March outcome remained broadly in line with expectations.