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Inflation Returns to Normal in Germany

After three years of dramatic price increases, inflation is back at regular levels in Europe’s largest economy. 

The rate of inflation in Germany in March 2024 sank to 2.2 percent, the lowest mark in three years. By comparison, in October 2022, inflation peaked at ten percent.

Munich economic think-tank ifo predicted that German inflation would sink below the recommended European Union norm of two percent by the summer.

A major factor driving the trend were year-on-year price reductions in electricity, natural gas, gasoline and food. Companies surveyed by ifo also said they expected cost pressures to further ease in coming months.

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