Germany sees inflation slowdown in ’24

Germany’s inflation eased in 2024 with consumer prices rising by an average of 2.2 per cent, marking a significant decline from 5.9 per cent in 2023 and 6.9 per cent in 2022, according to the Federal Statistical Office (Destatis).

December’s inflation rate reached 2.6 per cent, up from 2.2 per cent in November, reflecting steady increases in the fourth quarter of the year.

Core inflation, excluding energy and food, stood at 3.0 per cent for 2024, down from 5.1 per cent in 2023 but still exceeding overall inflation. Services drove price increases, with costs rising 3.8 per cent annually, led by insurance, social institution services, and restaurant services.

Goods prices rose 1.0 per cent in 2024, with food costs increasing by 1.4 per cent.

Monthly consumer prices rose 0.5 per cent in December, influenced by seasonal increases in travel costs and rail fares. Analysts note the easing of energy price declines and stable goods and services inflation as key factors shaping the year’s economic outlook.

The EU-Harmonised Consumer Price Index (CPI) saw a 2.5 per cent increase on average in 2024 compared to the previous year. In December 2024, the EU-Harmonised CPI rose by 2.8 per cent compared to the same month in 2023, while the monthly EU-Harmonised CPI showed a 0.7 per cent rise compared to November 2024.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama