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German state inflation points to national uptick as Iran war heats up
Inflation in four German states rose to up to 2.8% in March due to energy price shocks from the U.S.-Israeli war on Iran, prompting price rise expectations from companies.
- On Monday, German inflation rose to at least 2.5% across four states in March, driven by energy price shocks from the U.S.-Israeli war on Iran. The national statistics office will release full data later today.
- Energy price shocks from the conflict have prompted German companies to raise price expectations significantly. Ifo institute data shows the price expectations index rose to 25.3 points in March from 20.3 in February.
- State-Level inflation hit 2.8% in Bavaria, 2.6% in Lower Saxony, and 2.7% in North-Rhine Westphalia. Berenberg Bank chief economist Holger Schmieding warned that higher transport costs will impact many sectors as the conflict continues.
- Financial markets now expect three interest rate hikes this year from the European Central Bank , with the first projected for April or June. Policymakers aim to act early after past misjudgments.
- Economists expect harmonized inflation in the euro zone to reach 2.7% in March, with Tuesday bringing the broader release. Schmieding cautioned that rates could surpass 3% if the war drags on.
19 Articles
19 Articles
The oil prices strongly increased as a result of the Iran war hit consumer prices in Germany. In March, the inflation rate rose to 2.7 per cent, from 1.9 per cent in February, according to the Federal Statistical Office. This is the highest level since the beginning of 2024. According to data from the federal states, the prices of fuels and fuel oil rose strongly at the most important Austrian trading partner. Economists had expected the value n…
The Iranian war has increased the rate of inflation by 0.8 points in the end of the month. At 2.7 percent, it is now at the highest level in two years.
Rising energy prices pushed inflation up to at least 2.5 percent in four German states in March. The latest data suggests that price increases have also picked up again nationwide in Germany.
The Iran war hit consumer prices in March. Due to the sharp rise in energy prices, the inflation rate jumped to 2.7 percent. Experts do not expect to relax soon.
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