Germany’s inflation drops to 1.9%, lowest since 2021

Germany’s inflation rate in August 2024 slowed to 1.9 per cent year-on-year, the first time it fell below 2 per cent since March 2021 (1.8 per cent).

This decline follows inflation rates of 2.3 per cent in July and 2.2 per cent in June. Energy prices played a significant role, dropping 5.1 per cent compared to August 2023, with motor fuels down 6.9 per cent and household energy decreasing by 3.8 per cent. However, district heating costs surged 31.1 per cent.

Food prices rose by 1.5 per cent YoY, marking the fifth consecutive month of acceleration, while edible fats and oils increased by 15.9 per cent, with olive oil jumping 35.0 per cent. In contrast, dairy products were 0.4 per cent cheaper than a year ago.

Core inflation, excluding food and energy, remained steady at 2.8 per cent in August 2024.

Service prices saw a 3.9 per cent year-on-year increase, driven by insurance services (12.6 per cent) and catering services (6.7 per cent).

The consumer price index fell 0.1 per cent from July 2024, with energy prices down 1.4 per cent and food prices slipping by 0.2 per cent. Mineral oil products dropped 2.9 per cent month-on-month.

August’s EU-harmonised inflation fell to 2 per cent from 2.6 per cent in July.

Attribution: The Federal Statistical Office (Destatis)
Subediting: M. S. Salama