According to the final report from the Federal Statistical Office (Destatis), in January, consumer price growth slowed to 2.9% per annum, as expected, from 3.7% per annum in December. This is the lowest value since June 2021. On a monthly basis, consumer prices rose by 0.2%, as expected, after increasing by 0.1% in December.
The data also showed that in January, energy prices fell by 2.8% per year, despite the discontinuation of the brake on energy prices and the introduction of a higher carbon price (only in Germany), which affects the price of fossil fuels such as motor fuels, heating oil and natural gas. In December, energy prices increased by 4.1%. Electricity prices for households fell by 3.4% per annum, while fuel prices decreased by 2%. The cost of light heating oil fell by 9.3% per annum, and prices for natural gas decreased by 6.2%. However, the cost of central heating jumped by 13.3% per annum. Food prices rose by 3.8% per year after an increase of 4.6% per year in December. Meanwhile, the CPI excluding energy and food rose by 3.4% per annum (the lowest value) after an increase of 3.5% per annum in December. The inflation rate has stayed below the four percent mark since November 2023 as the rate of price increase also slowed gradually in other product groups.
The data also showed that in January, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - fell by 0.2% on a monthly basis and rose by 3.1% per annum. In December, HICP rose by 0.2% m/m and by 3.8% per annum.