Overview

• Germany's inflation rate in March 2025 was 2.2%, a slight decrease from February's 2.3%, according to the Statistisches Bundesamt.
• Food prices increased by 3.0% year-over-year, with significant spikes in items like paprika (+34.5%), cucumbers (+23.7%), and tomatoes (+19.9%).
• Energy prices declined by 2.8%, driven by lower costs for fuel and electricity, offering some relief to consumers.
• Service costs, including restaurant visits, rose by 3.5%, with ongoing discussions about VAT reductions on restaurant meals to ease household burdens.
• External economic uncertainties, such as trade conflicts and U.S. tariff policies, continue to pose risks to future inflation trends.