Germany's annual inflation rate fell to 2.1% in March from 2.3% in February; economist sees moderate downward trend over next few months

Cindy Allen

BERLIN , March 28, 2012 (Associated Press) – Official figures show that Germany's annual inflation rate slipped to 2.1 percent in March after spiking up last month on higher energy prices.

The Federal Statistical Office said Wednesday that the year-on-year rise in consumer prices slowed from 2.3 percent in February. In month-on-month terms, prices in Europe's biggest economy were up 0.3 percent.

UniCredit economist Andreas Rees said the latest estimate confirms that a moderate downward trend in German inflation "is still intact" despite higher energy prices and a further, though limited, decline is likely over the next few months.

On Tuesday, a survey showed German consumer confidence dipping after six months of rises amid high gas prices.

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