Inflation in Germany above the two percent mark, again

Rising prices for services and food have pushed the inflation rate in Germany 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, the Federal Statistical Office confirmed on Tuesday. Preliminary data had already been available at the end of November. From October to November of this year, consumer prices fell by 0.2 percent.

Economists expect the annual inflation rate to rise somewhat further in the coming months. In 2023, both energy prices and travel prices had fallen significantly at the end of the year - these dampening base effects are now no longer applicable.

Rising inflation rate – but no price hike

The good news for consumers: Despite some price spikes for butter in the supermarket or the annual car insurance bill, inflation is likely to remain at a relatively moderate level overall.

No expert is currently expecting a wave of price increases like the one in 2022, when energy and food prices rose sharply as a result of the Russian attack on Ukraine and the inflation rate in Germany climbed to almost nine percent. High inflation rates reduce the purchasing power of consumers because they can then afford one euro less.

Price-driving services

In November, consumers in Germany had to pay 1.8 percent more for food than a year earlier. In October, food prices were even more significantly higher than the previous year.

Services such as restaurant visits and insurance increased in price by 4.0 percent in November, as in the previous month. Fuel and heating were cheaper than a year earlier: overall, energy prices fell by 3.7 percent year-on-year. In the months before, however, energy prices were even more significantly below the previous year's level, thus dampening the inflation rate more. (dpa)