Overview

• Germany's inflation rate dropped to 2.3% in March 2025, below February's revised 2.6% and lower than the forecasted 2.4%.
• Core inflation, excluding food and energy, decreased to 2.5%, while services inflation fell to 3.4%, reflecting broader price stabilization.
• The U.S. is set to impose a 25% tariff on imported cars this week, threatening Germany's export-driven economy and key automotive sector.
• German political leaders and car industry representatives have criticized U.S. President Donald Trump's tariff plans, citing potential economic harm.
• Coalition negotiations continue following February's federal election, as lawmakers approve a fiscal package with increased defense spending and a €500 billion infrastructure fund.