Berlin [Germany], March 15: Germany's inflation rate stood at 2.3 percent in February, marking no change from the previous month, as confirmed by the Federal Statistical Office on Friday.
The inflationary pressure above 2 percent was largely driven by a significant rise in services prices, which increased by 3.8 percent year-on-year. Key sectors contributing to the hike included passenger transport, social services, insurance, and healthcare services.
Food prices also surged by 2.4 percent year-on-year, indicating a sharp acceleration from January's 0.8 percent increase.
Meanwhile, energy prices declined by 1.6 percent year-on-year in February, which helped suppress overall inflation, although the disinflationary effect of lower energy costs has weakened.
Carsten Brzeski, global head of Macro for ING Research, pointed out that energy prices in Germany have been highly volatile in recent months and could continue to fluctuate depending on geopolitical developments. He added that while a cooling labor market might ease wage and price pressures, the lagging effect of rising services costs could drive inflation higher.
Analysts anticipate German inflation to stabilize in the range of 2 percent to 2.5 percent over the long term.
Source: Xinhua News Agency