Inflation rate in Germany continued to decline in March and hit the lowest level in more than three years, official data showed on Friday.
Consumer prices in Europe's largest economy increased by 1 percent in March, compared with the same month last year, the German Federal Statistical Office (Destatis) said.
Inflation measured by consumer price index (CPI) stood at 1.2 percent in February, following a rate of 1.3 percent in January and 1.4 percent in December 2013.
"The slowdown in inflation thus continued," Destatis said in a statement, adding that the last time inflation was at 1 percent was in August 2010.
Falling prices of mineral oil products were attributed as the main reason of the low inflation. Overall, mineral oil products prices declined by 4.2 percent on March 2013. Within them, heating oil prices dropped by 7.5 percent, and motor fuels fell by 3.1 percent.
Measured by harmonized index of consumer prices (HICP), the European Central Bank(ECB)'s yardstick, German inflation in March eased to 0.9 percent, the lowest since June 2010 -- far below the ECB's medium maintenance target of "below but close to 2.0 percent."
According to the flash estimate of the European Union's statistical office, inflation in the euro area continued to fall to 0.5 percent in March from 0.7 percent in February.
The Frankfurt-based ECB decided to maintain its benchmark interest rate at 0.25 percent. Economists expected that the central bank would start measures against deflation in the common currency area./.