Inflation in Germany at its lowest level in 3 years!

The German Federal Statistical Office (Destatis) has released the final data on price increases for September.

Annual inflation in Germany, which was 1.9 percent in August, fell to 1.6 percent in September. Thus, while annual inflation in the country reached its lowest level since January 2021, the preliminary data announced on September 20 have been confirmed.

FOOD PRICES INCREASED, ENERGY PRICES FELL

The EU-harmonized Consumer Price Index (CPI) also rose by 0.1 percent compared to the previous month and by 1.8 percent on an annual basis in September.

In Germany, where energy and food have been the most important "price determinants" for months, food prices increased by 1.6 percent on an annual basis in September, while energy prices fell by 7.6 percent.

Annual inflation excluding energy prices was calculated at 2.5 percent in September.

Evaluating the data, Destatis President Ruth Brand stated, "The renewed decline in energy prices in particular lowered the inflation rate in September 2024 more than in previous months. In contrast, the fact that service prices continue to rise above average creates an inflationary effect."

In its growth report published on September 9, the German government lowered its inflation forecasts by 0.2 percentage points, projecting that inflation, which was 5.9 percent last year, will fall to 2.2 percent this year and to 2 percent in 2025. Inflation is estimated to be at the 1.6 percent level in 2026.