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German inflation to reach over 7% in March, state data suggest -Breaking


© Reuters. FILEPHOTO: A supermarket is filled with fruit shelves during the spreading of coronavirus disease COVID-19 in Berlin, Germany on March 17, 2020. REUTERS/Fabrizio Bensch

BERLIN, (Reuters) – German inflation will likely rise above 7% during March, according to data from five states. These data are higher than the predictions of analysts for federal data due out later in Wednesday.

Bavaria (North Rhine-Westphalia), Saxony and Brandenburg had annual consumer price inflation between 7% to 8%. That average came out at 7.54%.

An analyst poll by Reuters found that the overall CPI for March was 6.3%. Projections for the EU-harmonized inflation figure (HICP), are 6.7%. In February, CPI was at 5.1% with HICP of 5.5%.

High energy prices have exacerbated inflation, leading to an increase in the rate of inflation.

Timo Wollmershaeuser (head of forecasts, Ifo economic institute) stated that Russia’s attack against Ukraine was driving up both energy and agricultural prices.

Wollmershaeuser stated that this makes it more likely that inflation will exceed 5% in the coming year.

On Wednesday, the German government’s economic advisory council stated that inflation will reach 6.1% by 2022 and then fall to 3.4% next years.

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