The decline in inflation in Germany continued in February, supported by lower energy prices. According to information from the Federal Statistical Office on Tuesday, consumer prices were 2.5 percent higher than in the same month last year. The authority thus confirmed preliminary data. It was the lowest value since June 2021 at 2.4 percent. An annual inflation rate of 2.9 percent was recorded in January and 3.7 percent in December.
“The price situation for energy continues to ease. The increase in food prices has slowed significantly and is now below overall inflation for the first time in more than two years,” explained head of the authority Ruth Brand.
Despite the energy price brakes that expired at the beginning of the year and the increase in the CO2 price to 45 euros per ton of carbon dioxide (CO2), energy became cheaper in February for the second month in a row. Energy prices fell by a total of 2.4 percent compared to the same month last year.
Food costs 0.9 percent more than in February 2023. The increase weakened and, according to the information, was below the general price increase rate for the first time since November 2021. In January, food prices rose by 3.8 percent.
Compared to the previous month of January, consumer prices rose by a total of 0.4 percent. Here too, the statisticians confirmed preliminary data.
Economists expect inflation to fall further over the course of the year. Higher inflation rates reduce the purchasing power of consumers. People can afford one euro less. Many people turned their back on consumption last year. (dpa)