Inflation falls in Germany

Official figures show that inflation in Germany fell to an annual rate of 1.5% last month. This is the lowest rate of inflation in more than two years in that country.

The Federal Statistical Office of Europe’s largest economy said inflation would have been lower had it not been for the impact of higher energy and food prices.

The rate of inflation in February’s was down from 1.7% in January and 2% in December.

The German inflation rate is now well below the European Central Bank’s target of keeping price rises just below 2%.

The overall February rate for the 17 country euro zone has been estimated at 1.8%, according to recent figures from the European Union’s statistics office.In Dublin last week, the head of the IMF, Ms. Christine Lagarde called on the ECB to reduce interest rates further to boost economic activity in the wider euro zone.

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