Inflation in Germany. Lowest reading since mid-2021.

Preliminary data from the German statistical office Destatis show that inflation (CPI) in Germany amounted to 2.9 percent on an annual basis. This is the lowest reading since June 2021, and slightly better than economists predicted (the market consensus assumed 3%).

Inflation in Germany below 3%.

The preliminary data for January are definitely better than those for December 2023, when inflation in Germany amounted to 3.7%. year to year, compared to 3.2 percent in November. A year ago, inflation in our western neighbors was 8.7%. year on year, slightly less than in the record October and November 2022, when 8.8 percent was recorded.

Compared to the previous month, CPI inflation in Germany increased by 0.2%. after an increase of 0.1 percent on a monthly basis in December. As Bankier.pl notes, the decisive influence on disinflation processes is the effect of the high energy price base from 2021-22, which will soon expire. In January, prices in this category were 2.8 percent higher. lower than a year earlier. However, services became more expensive than a month ago (by 3.4% compared to 3.2% in December). The annual growth of goods prices has slowed down significantly: from 4.1 percent up to 2.3 percent The growth rate of food prices was clearly lower than in the previous months (it amounted to 3.8%, compared to 4.5% in December).

Core inflation in Germany (does not include food, fuel and energy prices) was 3.4% in January, compared to 3.5%. in December.

The data on inflation in Germany presented today by Destatis are preliminary. The final reading will be presented on February 9. Almost a week later, on February 15, we will learn preliminary data on January inflation in Poland.