National economy Inflation in Germany back above the two percent mark
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.
10.12.2024, 08:29
SDA
From October to November of the current year, prices fell by 0.2 percent, as confirmed by the Federal Statistical Office on Tuesday. Economists expect the annual inflation rate to rise slightly further in the coming months. In 2023, both energy prices and travel prices had fallen significantly by the end of the year - these dampening base effects no longer apply.
Rising inflation rate - but no wave of inflation
The good news for consumers: Inflation is likely to remain at a relatively moderate level overall, despite some price spikes for butter in the supermarket or the annual car insurance bill.
No expert is currently expecting a wave of inflation like the one in 2022, when energy and food prices soared as a result of the Russian attack on Ukraine and the inflation rate in Germany climbed to almost nine percent. High inflation rates reduce consumers' purchasing power because they can then afford less for one euro.
Services as a price driver
In November, food prices in Germany were 1.8% higher than a year earlier. In October, food prices were even higher than in the previous year.
As in the previous month, services such as restaurant meals and insurance increased in price by 4.0% in November. Fuel and heating were cheaper than a year earlier: overall, energy became 3.7 percent cheaper within a year.
In the previous months, however, energy prices had been even lower than in the previous year, thus dampening the inflation rate to a greater extent.
