Berlin: Inflation in Europe’s largest economy decelerated more than forecast in March.
Consumer-price growth in Germany slowed to 1.5 percent from 2.2 percent the previous month, the Federal Statistical Office said yesterday, marking the first weakening since August 2016. Economists had forecast inflation of 1.9 percent.
The decline partly reflects the timing of the Easter holiday, which was in March in 2016, and may be a precursor to softer euro-area numbers, which are due today. Consumer-price growth in Spain also weakened more than expected in March, according to data published yesterday, with a slowdown to 2.1 percent from 3 percent last month. A drop in the overall euro area rate probably won’t surprise the European Central Bank, which predicted it would peak in the first quarter. The euro fell 0.3 percent to $1.0735 at 2:32 pm in Frankfurt, after declining 0.9 percent over the previous two days.
While a pickup in inflation in the past year has kickstarted a discussion about the central bank’s monetary policy stance, President Mario Draghi (pictured) has said he’s waiting for assurances that the improvement is broad based and sustainable.
