Germany's Inflation Slows to 2.5% in February on Falling Energy and Food Prices

• Inflation in Germany fell to 2.5% in February, the lowest since June 2021, due to easing energy prices and slower food inflation • Energy prices declined 2.4% year-over-year in February despite expired price brakes and higher CO2 costs • Food inflation slowed to 0.9% year-over-year in February, below the overall inflation rate for the first time since November 2021
• Forecasts project 2023 inflation to average 2.3%, down from 5.9% in 2022, supported by expected real wage growth • The ECB has raised interest rates since summer 2022 to bring eurozone inflation back below 2%