Overview
- Germany’s statistics office confirmed Monday that March inflation rose to 2.7 percent, with energy up 7.2 percent year over year and prices 1.1 percent higher than in February.
- The surge reflects costlier fuel and heating oil after Iran’s actions restricted the Strait of Hormuz, a route for about one-fifth of global oil flows that has pushed world prices higher.
- A new rule for fuel pricing takes effect April 1 after a brief publication delay, allowing stations to raise prices only once daily at 12:00 while leaving price cuts unrestricted, with fines up to €100,000 for violations.
- The reform also strengthens the Cartel Office by forcing companies to justify sharp increases, and the government is weighing further relief such as a temporary energy‑tax cut, a higher commuter allowance, a fuel price cap, and a windfall tax on oil firms.
- Companies signal they will charge more as the Ifo price‑expectations index climbed to 25.3 points in March, and the Bundesbank warns inflation could move toward 3 percent if energy supplies stay tight.