In Germany, the inflation rate edged upwards to 0.3% in March. This uplift is mainly attributable to the renewed increase in energy prices. Whilst the German figures were in line with expectations, Spanish consumer prices compared to the previous year fell much less than expected. “We assume that the inflation rate in Germany will continue rising in the course of the year. Energy prices will probably start to increase more quickly around mid-year. Moreover, labour costs, which are accelerating in part due to the minimum wage, will also intensify the underlying inflation pressure. According to our estimates, the inflation rate should amount to around 2% by year-end.” – said Commerzbank in a report on Monday

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