Germany sees rise in inflation rate

Consumer prices in Germany were up 0.3% in March from February and up 1.1% from a year earlier, led by increases in prices of tobacco and healthcare costs.

The Federal Statistics Office said the main driver behind the March development was the higher tobacco tax introduced on March 1, which lifted the prices on tobacco goods by 12.2% for the month and the year.

Health reforms also helped push up the cost of living in Germany, with healthcare prices rising by 16.7% on a 12-month basis last month.

By contrast, falling oil and fuel prices had a dampening effect on inflation, the statistics office said.

The office said the harmonised index of consumer prices (HICP) for Germany in March was up 0.5% month-on-month and up 1.1% year-on-year, according to the final data.