GERMANY FINAL MAR CPI +0.8%; +7.4% Y/Y (=FLASH)

GERMANY FINAL MAR HICP +1.1% M/M; +7.8% Y/Y (=FLASH)

• German inflation cooled to +7.8% y/y (HICP), whilst rising +1.1% m/m in March, confirming results of the flash release.
• National CPI data showed energy prices slowed considerably on the year in February, driven lower by lower international prices and government energy price breaks. Food prices continued to accelerate, ticking up +1.2% m/m.
• Core inflation rose +5.8% y/y (non-harmonised), edging up by 0.1pp from February. This was flagged by earlier evidence from state data.
• The hotter core print was driven by services inflation, which rose +4.8% y/y (+0.1pp on Feb), whilst goods inflation eased to +9.8% y/y (down from +12.4% in Feb).
• As such, Germany was likely a key contributor to the hotter eurozone aggregate core HICP print in the March flash, which edged up to +5.7% y/y, adding to the ECB's sticky inflation concerns.