(Reuters) – German inflation calculated according to European standards (IPCH) slowed down to 2.3% in March, more than expected, show the preliminary data published Monday by the Federal Statistical Office, which should reinforce managers of the European Central Bank (ECB) in their interest rate reductions.

Analysts interviewed by Reuters anticipated a slowdown at 2.4% in March after 2.6% in February.

Over a month, IPCH inflation slowed down at 0.4% this month, while analysts awaited it stable at 0.5%.

“German inflation is gradually approaching price stability, defined at 2%,” said Friedrich Heinemann, an economist at the Zew Institute, according to which the drop in oil prices, but also the gloom of the economy, explain these figures.

Basic inflation, which excludes the volatile prices of food and energy, slowed down to 2.5% in March, compared to 2.7% the previous month, which shows that, unlike the past, the slowdown is not mainly due to energy prices and foodstuffs.

“It is obvious that companies in the service sector, in particular, are increasingly difficult to pass on the increase in wage costs on their customers due to the low economy,” said Ralph Solveen, economist at Commerzbank.

The German economy was in fact contracted in the last quarter of last year, reviving fears of a recession, defined as two consecutive quarters of contraction.

German inflation data was published before those in the euro zone, expected on Tuesday. Economists interviewed by Reuters await an increase in prices at 2.3% in March in the European block, as in February.

Figures in the euro zone will be closely monitored while the ECB has reduced its interest rates six times since last June but has given little indications on its future actions.

The ECB will render its next decision on April 17.

(Report Rachel More, Maria Martinez and Ludwig Burger, Diana Mandiá, edited by Blandine Hénault)

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