Germany's Federal Statistical Office (Destatis) reported on Tuesday the country’s consumer price index (CPI) is expected to increase 0.5 percent m-o-m in March after gaining 0.7 percent m-o-m in the previous month.

On the y-o-y basis, Germany’s CPI is seen to surge 1.7 in March, following a 1.3 percent jump in February. This represents the largest advance since February 2020.

Economists had predicted inflation would rise 0.5 percent m-o-m and 1.7 percent y-o-y in March.

According to the report, food price increased 1.6 percent y-o-y in March after a 1.4 percent y-o-y gain in February. Services costs also grew 1.6 percent y-o-y in March, accelerating from 1.4 percent y-o-y in the previous month. Energy prices jumped 4.8 percent y-o-y after a 0.3 percent y-o-y advance in February.

Meanwhile, the harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is expected to rise 0.5 percent m-o-m and 2.0 percent y-o-y.