FRANKFURT — Germany’s annual inflation soared to 7.6% in March, far beating expectations, preliminary data from the national statistics office showed on Wednesday.
Prior to the release, a Reuters poll of economists predicted inflation would hit 6.7%.
Measured by national reporting standards, inflation rose 7.3 percent, the statement said.
Earlier on Wednesday, the German government’s council of economic advisers forecast inflation to average 6.1% this year, more than three times the European Central Bank’s price stability target, before falling to 3.4% in 2023.
Eurozone inflation should be released on Friday.
The European Commission’s Economic Sentiment Indicator, released earlier on Wednesday, also sent a warning signal of further inflation ahead. The survey showed that selling price expectations for the next three months have reached unprecedented levels across all surveyed business sectors.
This morning, ECB President Christine Lagarde said the war in Ukraine is expected to drive up inflation in the near term. At the same time, however, she warned that the region faces significant risks to growth, which will force policymakers to act only gradually in their fight against soaring prices.