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Inflation in Germany accelerated to 3.8% in December


Janvier, 16 2024
watermark Economic news

According to a report by the German Federal Statistical Office, consumer prices in the country, harmonized with European Union standards, increased by 3.8% year-on-year in December. 


Thus, inflation accelerated compared to the previous month, when it was 2.3% and was at its lowest level since June 2021.


The data of the report coincided with both the preliminary assessment and the expectations of analysts. In December, prices for consumer goods and services increased by 0.2% compared to the previous month, which is also in line with forecasts. In November, prices fell by 0.7%.


If we consider prices only by German standards, then in December they increased by 3.7% y/y and by 0.1% monthly. These figures also coincided with expectations and preliminary data. For comparison, in November, the first indicator rose by 3.2%, the second – decreased by 0.4%.


For the whole of 2023, consumer prices in Germany increased by an average of 5.9% compared to the previous year. In 2022, inflation averaged 6.9%.


Core inflation (excluding food and energy) in December was 3.5% y/y, which is the lowest growth rate since July 2022. Food prices rose by 4.6%, clothing and shoes by 3.5%, and energy by 4.1%. The cost of services increased by 3.2%.


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