German inflation eases to lowest in almost three years

German inflation eased in March, adding to the signs that euro zone price pressures are abating and increasing the pressure on the European Central Bank to start cutting interest rates.

Inflation in Europe’s largest economy slackened to 2.3% helped by lower food and energy prices, final data from the federal statistics office showed on Friday. This is its lowest level since June 2021.

German consumer prices, harmonised to compare with other European Union countries, had risen by 2.7% year-on-year in February.