Rising prices for services and food have pushed the inflation rate in Germany back above the two percent mark for the first time since July.
In November, consumer prices were 2.2 percent higher than in the same month last year, as the Federal Statistical Office confirmed on Tuesday. Preliminary data was already available at the end of November. From October to November of the current year, consumer prices fell by 0.2 percent.
Economists assume that the annual inflation rate will rise somewhat further in the next few months. In 2023, both energy prices and travel prices had fallen significantly at the end of the year – these dampening base effects are now no longer present.
Rising inflation rate – but no wave of inflation
The good news for consumers: despite some price spikes for butter in the supermarket or the annual car insurance bill, inflation is likely to remain at a relatively moderate level overall.
No expert is currently expecting a wave of inflation like the one in 2022, when energy and food prices rose sharply as a result of the Russian attack on Ukraine and the inflation rate in Germany climbed to almost nine percent. High inflation rates reduce the purchasing power of consumers because they can then afford one euro less.
Price driver services
In November, consumers in Germany had to pay 1.8 percent more for food than a year before. In October, food prices were even significantly higher than the previous year.
Services such as visits to restaurants or insurance rose by a total of 4.0 percent in November, as in the previous month. Refueling and heating were cheaper than a year earlier: Overall, energy prices fell by 3.7 percent within a year. In the previous months, however, energy prices were significantly below the previous year’s level and thus dampened the inflation rate more. (dpa)