Germany's inflation rate, measured by the Consumer Price Index (CPI), stood at 2.3 percent in January 2025 compared to the same month in 2024, confirming preliminary results. This marks a slight decrease from December 2024, when inflation was 2.6 percent. The Federal Statistical Office (Destatis) reported that lower food price increases and declining energy costs contributed to the slowdown. Compared to December 2024, consumer prices fell by 0.2 percent.
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Prices for energy products dropped by 1.6 percent year-on-year, maintaining the same rate of decline as the previous month. Household energy costs fell by 2.5 percent, with electricity prices decreasing by 3.6 percent and solid fuel prices dropping by 8.7 percent. However, natural gas prices rose slightly by 0.5 percent, and district heating saw a significant increase of 9.8 percent. Factors influencing energy prices included higher CO₂ pricing, increased electricity surcharges, and rising gas network charges.
Core inflation, which excludes food and energy, stood at 2.9 percent, remaining higher than the overall inflation rate for the past year. The inflation rate excluding only energy was 2.7 percent.
Service prices continued to rise at an above-average rate, increasing by 4.0 percent year-on-year. Additionally, maintenance and repair of vehicles rose by 5.7 percent.
Prices for goods increased by 0.9 percent year-on-year. Consumer goods rose by 0.9 percent, while durable goods saw a smaller increase of 0.5 percent. Notable price hikes included non-alcoholic beverages and tobacco products, both rising by 5.8 percent. In contrast, furniture and lighting prices fell by 1.2 percent.
On a month-to-month basis, overall consumer prices fell by 0.2 percent from December 2024 to January 2025.
More information:
Destatis
www.destatis.de