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Germany's consumer price inflation slowed to 2.2% in March 2025, marking the lowest rate since November 2024 and aligning with market expectations, a preliminary estimate showed. This moderation was primarily driven by a sharp slowdown in services inflation, which eased to 3.4% from 3.8% in February, along with a further decline in energy costs, which dropped by 2.8% compared to a 1.6% decrease in the previous month. However, food inflation increased slightly to 2.9%, up from 2.4%. Core inflation, which excludes volatile items such as food and energy, also slowed to 2.5%, the lowest rate since June 2021. On a monthly basis, consumer prices rose by 0.3% in March, following a 0.4% increase in February.