Germany‘s inflation rate stood at 2.2% in June 2024, the same level as the previous year, new data from the country’s Federal Statistical Office (Destatis) has shown.
This is a slight decrease on the inflation rate in May (2.4%), and level with the inflation rate in both March and April, which stood at 2.2%.
Commenting on the figures, Ruth Brand, Destatis president, said, “Energy and food prices have been dampening the inflation rate since the beginning of the year. In contrast, we are continuing to observe above-average price increases for services.”
If energy is excluded, the inflation rate stood at 2.7% in June 2024. Alternatively, if excluding both food and energy core inflation stood at 2.9%. This is the first time since February 2022 that core inflation has fallen below the 3% mark, Destatis noted.
Energy prices decline
Energy prices decreased by 2.1% in June 2024 compared to the same month last year, the data showed. Household energy prices dropped by 3.0%, and fuel prices fell by 0.6%. Significant price reductions were observed in firewood, wood pellets, and other solid fuels (-13.7%), electricity (-6.3%), and natural gas (-4.3%).
Conversely, some energy products saw price increases, including district heating (+27.6%) and light heating oil (+7.9%).
Food prices increase
At the same time, however, food prices rose by 1.1% in June 2024 compared to the previous year. This increase was higher than in May 2024 (+0.6%) but still below the overall inflation rate.
Notable price hikes were seen in edible fats and oils (+11.8%), especially olive oil (+46.7%), and sugar, jam, honey, and other sweets (+6.1%). Other food items like fruit (+1.5%) and bread and cereals (+1.2%) also saw price increases. Dairy products, however, were 3.0% cheaper.
Goods and services
Prices for goods increased by 0.8% in June 2024, compared to the same month last year, however, this is below the overall inflation rate.
Consumer goods rose by 0.8%, and durable goods by 0.6%. Some items became significantly more expensive, however, such as tobacco products (+5.6%) and non-alcoholic beverages (+5.1%).
Service prices rose by 3.9% over the same period, ahead of the inflation rate, with transportation services, increasing by 3.5%, and insurance services up 12.3%.
Notable price hikes were also seen in hospitality services (+6.8%) and vehicle maintenance and repair (+6.2%).
Monthly changes
On a month-on-month basis, from May 2024 to June 2024, the CPI increased by 0.1%.
Food prices slightly increased by 0.3%, particularly vegetables (+0.7%). Energy prices decreased by 1.1%, with notable reductions in fuel prices (-2.5%).
