German inflation hits 3year low

The rate of inflation in Germany, Europe's biggest economy, fell to its lowest level in more than three years in March, official final data showed on Friday. The cost of living rose by 1.0 percent on a 12-month basis this month, down from 1.2 percent in February, the federal statistics office Destatis said in a statement. The last time inflation in Europe's biggest economy was lower was in June 2010. Using the Harmonised Index of Consumer Prices (HICP), the European Central Bank's inflation yardstick, inflation in Germany stood at 0.9 percent in March, down from 1.0 percent in February. The ECB defines price stability as increases in the harmonised index of close to but just below 2.0 percent. The final data confirm a preliminary estimate released at the end of March.