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Germany’s annual inflation rate was confirmed at 2.2% in March 2025, slightly easing from 2.3%, marking the softest pace since last November. This moderation came amid a sharp slowdown in services inflation, which eased to 3.5% from 3.8% in February, along with a faster decline in energy costs, which fell by 2.8% compared to a 1.6% drop in the previous month, mainly weighed by lower prices for motor fuels, solid fuels, and heating oil. However, food inflation increased to 3.0%, up from 2.4%. Core inflation, which excludes volatile items such as food and energy, also slowed to 2.6%, the lowest rate since June 2021. On a monthly basis, consumer prices advanced by 0.3% in March, following a 0.4% rise in February. Meanwhile, the EU-harmonised inflation rate increased 2.3% year-over-year, after a 2.6% rise in February, while monthly harmonised consumer prices climbed 0.4%, easing slightly from a 0.5% gain.