“Inflation cools in Germany and France as food and energy prices fall…”

Germany’s year-on-year inflation for March 2024 was released on Friday morning, clocking in at 2.2%, according to the Federal Statistical Office. This was a step down from February’s 2.5%, while also being the lowest figure since May 2021.

This was mainly due to food inflation seeing the first decline since February 2015, sliding to -0.7% in March, from 0.9% in the previous month. Similarly, energy prices also fell at a faster rate, to -2.7% from -2.4% in February.

Goods inflation also reduced to 1.0% in March, down from 1.8% in the previous month. However, services’ prices increased from 3.4% in February, 3.7% in March.

Core inflation, which does not take into consideration energy and food prices, dropped to its lowest figure since June 2022 in March, at 3.3%.

Month-on-month inflation in March inched up 0.4%, the same as in February.

Germany’s March inflation report has fueled more investor hopes that the country’s inflation will soon come down to the European Central Bank’s 2% target. This could go a long way in helping support economic recovery and reduce the cost of living in Europe’s second-largest economy.

French inflation falls to lowest since September 2021

The French year-on-year inflation report for March 2024 also came out on Friday, coming in at 2.3%, according to INSEE France, which was the lowest number since September 2021. It was also a considerable reduction from 3% in February, and below analyst expectations of 2.6%.

As in Germany, France’s inflation decrease was also primarily due to food prices coming down, clocking in at 1.7% in March, down from 3.6% in February. Services inflation fell to 3% from 3.2% in the previous month, while energy inflation slid significantly to 3.4% from 4.3% in February.

Inflation for manufactured products also fell to 0.1% from 0.4% in the previous month, with tobacco prices following the same trend, declining from 18.7% in February to 10.7% in March.

Month-on-month, French inflation rose 0.2% in March, from 0.8% in March, primarily because of falling energy prices.

Spain’s March inflation print rebounds from six-month lows

In March, inflation in Spain saw an uptick from the six-month lows seen in February, clocking in at 3.2%, up from the previous month’s 2.8%, according to the National Statistics Institute (INE). This was mainly due to increasing utilities and house prices, which saw a rise of 1.5% from February’s -2.7%.

Transportation prices also surged to 2.9% from 2.4% in the previous month, while culture and recreation prices advanced 3.8% in March from 2.8% in February. However, prices fell for food and non-alcoholic beverages, to 4.3% from 5.3% in February.

Month-on-month, March inflation rose 0.8% from February.

Spain has been dealing with comparently sticky-high inflation in the last few months, due to services mark-ups being relatively elevated, as well as productivity falling especially in the open sector.

Poland ends long wait and gets first payment of EU recovery funds: €6.3 billion

Poland has received €6.3 billion under the European Union’s recovery fund, the first payment of its kind.

The payment, confirmed on Monday, ends a long wait for the country, whose national plan was approved in June 2022 but remained blocked over persistent concerns about a lack of judicial independence and democratic backsliding.

The decline was credited to Law and Justice (PiS), the hard-right party that governed Poland for eight consecutive years and spearheaded far-reaching reforms that expanded political control over the judiciary and packed courts with loyalists.

The country’s share of the recovery fund, a total of €34.5 billion in low-interest loans and €25.3 billion in non-repayable grants, stood frozen until Donald Tusk took over as Prime Minister and began tabling legislation to undo the PiS-era legacy.

The European Commission officially unblocked the money in late February, days after Tusk’s government presented a nine-bill “action plan” to restore judicial independence and adopted a ministerial order to discontinue unjustified proceedings against judges.

The new cabinet also committed to abide by the ECJ ruling and respect the primacy of EU law, which PiS had contested, exacerbating the row.

The Commission considered Warsaw’s overtures sufficient to meet the two overarching conditions, or “super milestones,” related to the judiciary and allow Poland to gradually receive payments under the bloc’s €750-billion common pot.

The move paved the way for the disbursement of €6.3 billion, made up of €3.6 billion in loans and €2.7 billion in grants, which are earmarked for diversifying energy supplies, combatting air pollution and modernising agricultural production, among other things.

Until now, Poland had only received €5.1 billion in “pre-financing” but this was done without strings attached and was the same for every member state.

“An important day for Poland,” European Commission President Ursula von der Leyen said on Monday. “This is just the beginning.”

“Good cooperation brings results,” said Tusk.

Katarzyna Pełczyńska, Poland’s minister for regional policy, described the sum as the “largest transfer from the EU in the history of our membership.”

Warsaw is expected to submit two more requests this year to receive an additional €23 billion. All payouts will be subject to the completion of investments and projects and could be paused if Tusk’s judicial plans suffer a setback.

Malta Company Announcements:

Melite Finance p.l.c.

The Board of Directors of Melite Finance p.l.c. (the “Company”) hereby announces that it has convened an extraordinary general meeting of the shareholders of the Company, to be held on Friday 19th April 2024.

During this meeting the shareholders of the Company will be asked to consider the request made by the Board of Directors of the Company for financial support to be granted to the Company and Melite Properties Srl, its wholly owned Italian subsidiary.

This request for financial support has been made by the Board of Directors of the Company in light of the recent developments in Italy as explained in the Company’s announcement of the 15th March 2024.

Main Street Complex p.l.c.

The Board of Directors of Main Street Complex p.l.c. (the “Company”) announces that it is scheduled to meet on 24 April, 2024 to consider and, if deemed appropriate, approve, the audited financial statements of the Company for the financial year ended 31 December, 2023 and the recommendation of a final dividend.

International Hotel Investments plc

The Board of Directors of International Hotel Investments p.l.c. announces that on 30 April 2024, it is due to consider and, if deemed fit, approve, the Audited Financial Statements of the Company for the financial year ended 31 December 2023.

Bank of Valletta plc

Bank of Valletta plc (the Bank) hereby announces that the forthcoming Annual General Meeting (AGM) of the Bank will be held on Friday 31 May 2024. Further information relating to the AGM will be announced at a later date.

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