The rate of inflation in Germany rose to the highest level in the current year at 2.4 percent in September. This was announced by the Federal Statistical Office on the basis of preliminary figures. In August, the inflation rate had attracted the first time this year: consumer prices were 2.2 percent above the level of the same month.
Higher inflation rates reduce purchasing power: people can afford for one euro less. Food has been more expensive for months than a year ago, and consumers also have to dig deeper into their pockets for services such as travel and restaurant visits.
Does the inflation rate set itself over the two percent mark?
“The inflation is more persistent than many hoped,” says Commerzbank chief host Jörg Krämer. This is mainly due to significantly increased wage costs, which is why the prices for services increase significantly. According to Michael Heise, chief economist at the asset manager HQ Trust, relaxation is not to be expected so quickly: “A decline in the inflation rate below two percent is not foreseeable by the end of the year.”
From August to September of the current year, consumer prices rose by 0.2 percent according to calculations by the Wiesbaden statisticians.
Even the core inflation without the prices for food and energy that is prone to fluctuations and energy, after three months at 2.7 percent, attracted slightly to 2.8 percent in September.
Rising food prices
The good news for consumers: the wave of inflation that Germany had grown on Ukraine after the start of the Russian attack has expired. Inflation dropped to 2.2 percent last year – after 5.9 percent in 2023 and even 6.9 percent in 2022. For this year, leading economic research institutes expect a relatively moderate value of 2.1 percent.
But inflation feels higher, consumers are feeling the increased prices in everyday life. Especially when purchasing daily, people notice price jumps. According to data from the federal states, fruit and dairy products such as butter and milk were more expensive in September.
Nationwide, people in September had to pay 2.1 percent more than a year earlier. In August, food prices had increased by 2.5 percent.
Do we have to get used to more expensive foods?
According to a current analysis by the European Central Bank economist (ECB), food prices in Germany have increased by 37 percent since the pre-Corona year 2019. The euro area applies: “The food prices remain stubborn – a third higher than before the pandemic.”
According to this, the prices for beef, poultry and pork are more than 30 percent above the level of the end of 2019. Milk prices have since increased by around 40 percent, butter prices. Coffee, olive oil, cocoa and chocolate have been more expensive.
According to surveys, many consumers go to the discounter more often and pay more attention to special offers. Several people even finance daily expenses such as food purchases on pump.
Services significantly more expensive, energy only a little cheaper
Life in Germany was also expensive in other areas in September: the prices for services were 3.4 percent above the level of the same month. In July and August, service prices had attracted 3.1 percent each. According to the data from the state offices, the data of the state offices have been significantly more expensive, such as vehicle insurance and tickets for buses and trains.
According to the Federal Office, energy was 0.7 percent cheaper than a year earlier in September. In August, the prices were 2.4 percent below the level of the previous year. “Last September there were significant price reductions for fuel. Therefore, energy prices now dampen the increase in consumer price significantly less than before,” says Stephanie Schoenwald, economist at the KfW support bank.
The Federal Statistical Office calculates every month how prices have developed in the previous year and last year. In addition, the statisticians write down in shops that cost fruit and vegetables, shoes or furniture. How high is the apartment rent, what does the fuel at the petrol station cost? Thousands of individual prices of goods and services are recorded representatively according to the same scheme. A part is also collected on the Internet.
Electricity and gas significantly more expensive than before Ukraine War
Good news: In the first half of 2025, gas and electricity for households in Germany became somewhat cheaper. However, gas prices are more than three quarters higher than before the Russian attack on Ukraine in February 2022 and the following energy crisis. With electricity it is a fifth.