Inflation in Germany: Stability thanks to falling energy prices!

Inflation in Germany: Stability thanks to falling energy prices!

In May 2023, consumer prices in Germany were 2.1 percent higher than in the same month of the previous year, which indicates stabilizing the inflation rate. An analysis by ZVW Percent fraud. This stabilization is strongly supported by the declining energy prices, which were 4.6 percent cheaper in May 2023 than in the previous year.

ruth brand, President of the Federal Statistical Office, confirmed that the inflation generally stabilizes itself. However, the price increase for services was still noticeable, with a total of 3.4 percent more than in the same month. The increases in transport services were particularly strong with 11.4 percent and insurance with 9.4 percent.

price development in food

In the area of ​​food prices, there were also significant changes. These rose by 2.8 percent in May 2023. The price increases in certain foods are particularly striking: butter was 17.6 percent more expensive, chocolate by 20.2 percent and fruit by 7.4 percent. In contrast, there were price declines in sugar, which was 27.5 percent cheaper, as well as in olive oil, the price of which fell by 17.2 percent.

The core inflation, which does not take into account the prices for energy and food, was 2.8 percent in May. The IFO Institute predicts an inflation rate of 2.1 percent for 2025, while the Bundesbank expects an rate of 2.2 percent for 2023 and 1.5 percent for 2026

comparison of price development

A look at developments in the past few months shows that energy prices fell by 2.1 percent in June 2024 compared to the previous year, which, together with stable food prices, dampened inflation. According to Tagesschau , consumer prices rose by 2.2 percent in June 2024. This was a decline compared to 2.4 percent in May.

The price curve for food exceeded total control with an increase of 1.1 percent in June 2024. While some goods such as olive oil increased (47 percent), price increases in other, e.g. dairy products that were 3 percent cheaper.

long -term expectations

The core inflation rate without food and energy, which was 2.9 percent in June 2024, was again below 3 percent since February 2022. Service sectors continued to show above -average price increases, with insurance companies becoming more than 12 percent more expensive. Restaurant visits also rose by almost 7 percent.