People are shopping and walking in the shopping streets in downtown Munich, Bavaria, Haute-Bavaria, Germany, February 20, 2025.
Michael Nguyen | Nurphoto | Getty images
German annual inflation came to a 2.8% unchanged but greater than 2.8% in February, the provisional data from the Statistics Agency Destatis showed on Friday.
Printing is harmonized in the euro zone for comparability.
February’s printing compared to an estimate of 2.7% of economists interviewed by Reuters. The annual reading of the annual harmonized inflation of January also came to 2.8%, which was already unchanged from December.
On a monthly basis, harmonized inflation increased by 0.6%, according to preliminary Destatis data.
The so -called basic inflation, which withdraws food and energy costs, fell to 2.6%, down from reading 2.9% in January. The inflation print of closely watched services was also relieved, at 3.8% in February after 4% the previous month.
German inflation had fallen below the target of the European Central Bank of 2% in September of last year, but was resettled afterwards and has remained above the crucial brand for five consecutive months now.
German data arrives before printing the consumer price index for the euro zone on Monday and the last BCE decision later next week. In January, the central bank reduced interest rates for the fifth time since it started to mitigate monetary policy last summer and the markets are largely prices in another drop on Thursday.
Figures are also one of the first key economic data points to be published since the German elections last weekend, in which the conservative alliance between the Democratic Christian Union and the Christian Social Union has obtained the largest share of votes.
This puts their main candidate Friedrich Merz online to take over from Olaf Scholz as Chancellor, although it seems likely that the CDU-CSU will form a power coalition with the Scholz Social Democratic Party.
The economy was a hot topic during the campaign, Merz suggesting that its political plans – including income and corporate tax reductions, less bureaucracy, changes in benefits and deregulation – would give the country’s economy a necessary boost. The gross domestic product of Germany has long been hanging around around the territory of the recession and decreased 0.2% after price adjustments, seasonal and calendar in the last quarter of 2024 compared to the previous three months, according to Destatis.
