The inflation rate in Germany, as measured by the year-on-year change in the consumer price index (CPI), was recorded at +2.2% in June 2024. This marks a slight decrease from the +2.4% seen in May 2024, aligning closely with the rates observed in April and March of the same year, which were also +2.2%. Ruth Brand, President of the Federal Statistical Office (Destatis), attributed this stability to energy and food prices, which have exerted a dampening effect on overall inflation since the start of the year. Conversely, there has been notable inflation in service prices, which continue to rise above average.
Consumer prices saw a modest increase of +0.1% from May to June 2024.
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Core inflation rate at +2.9%
Excluding energy, core inflation was +2.7% in June 2024, while inflation excluding both food and energy—considered core inflation—stood at +2.9%. This is the first time since February 2022 that core inflation has fallen below the three percent mark.
Goods and services prices
Goods prices increased by 0.8% year-on-year, with notable rises in tobacco products (+5.6%) and non-alcoholic beverages (+5.1%). Service prices saw a substantial rise of 3.9%, notably driven by increases in insurance (+12.3%) and catering services (+6.8%).
Overall, while goods prices rose moderately, service prices showed a marked increase, influencing the overall inflation rate in Germany for June 2024.
More information:
Destasis
www.destatis.de