Germany has recorded an inflation rate of 2% in October 2024, according to the Federal Statistical Office (Destatis). This marks an increase from September’s figure of 1.6% and August’s 1.9%. Month-over-month, consumer prices saw a rise of 0.4% in October. When factoring out energy prices, the inflation rate for the month stands at 3%. Core inflation, which excludes both food and energy, moderated slightly, settling at 2.9% for October.
The year-on-year change in the consumer price index has revealed that rising food prices and ongoing increases in service costs were significant contributors to this inflation spike. Specifically, prices for goods overall increased by 0.4% in October compared to the same month last year. Non-durable consumer goods saw a slightly higher price increase at 0.5%, while durable goods rose modestly by 0.2%.
Despite the upward trend in overall inflation, energy prices have shown a decline, dropping by 5.5% compared to the same time last year. This decline, although significant, marks a slower rate of decrease compared to the 7.6% drop observed in September. The interplay between rising consumer prices and falling energy costs has created a complex economic environment in Germany.
As we look forward, these trends in inflation and consumer spending will be closely monitored, especially in the context of Germany’s economic health and the broader European market dynamics.
