German inflation hits three-year low in March | Business News | DW.DE | 11.04.2014 - 0 views
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German inflation hits three-year low in March
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Prices for heating oil and car fuels, for example, had fallen 4.2 percent compared with March 2013, Destatis announced.
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, the agency announced, caused by decreasing prices for oil-based products over the course of a mild winter.
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The rate contrasts sharply with the 2 percent inflation goal the ECB considers desirable with regard to price stability.
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The phenomenon is called deflation and is bad for the economy as a whole as it stalls investment and job creation, leading to shrinking output.
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Institute for the Global Economy, however, have predicted a sharp rise in inflation for later this year.