Life in Germany was no longer as expensive in March as in the months before. However, food prices were above average. Overall, the consumers were: In Germany in March, 2.2 percent above the level of the previous year’s month, as the Federal Statistical Office confirmed preliminary information.
In January and February, the annual inflation rate was still 2.3 percent, in December it was 2.6 percent. Higher inflation rates reduce people’s purchasing power because they can then afford less for one euro.
Falling prices in Europe because of Trump’s customs duties?
As is going on with inflation, US President Donald Trump has become more uncertain with the confrontational customs policy: escalating trade conflicts could make products from US production in Europe more expensive. On the other hand, manufacturers could: Inside, for example from China, push more into the European market to avoid US tariffs.
“So some prices could fall because the competition is increasing,” said Marcel Fratzscher, President of the German Institute for Economic Research (DIW) ‘Tagesschau24’ last week. “So we don’t have to worry about that we have a high inflation or price increase in Germany.”
Many economists: Inside, expecting the inflation rate in Germany will decrease over the course of the year – if not quite as quickly as hoped for at first. According to the latest assessments by the Munich IFO Institute from the end of March, the inflation rate in the coming months is likely to be largely more than two percent and thus just above the target brand of the European Central Bank.
The BVR banking association considers it possible that the billion -dollar package for defense and infrastructure decided by the Bundestag and the Federal Council will lead to more inflation.