According to the final report from the Federal Statistical Office (Destatis), in February, consumer price growth slowed to 2.5% per annum, as expected, from 2.9% per annum in January. This is the lowest value since June 2021. On a monthly basis, consumer prices rose by 0.4%, as expected, after increasing by 0.2% in January. February's growth was the sharpest since April 2023.
"The rate of inflation has continued to slow. The price situation for energy products continues to ease. The increase in food prices has slowed markedly and is now below the overall inflation rate for the first time in more than two years," says Ruth Brand, President of the Federal Statistical Office.
The data also showed that in February, energy prices fell by 2.4% per year, despite the discontinuation of the brake on energy prices as of January 2024 and the introduction of a higher carbon price also from January 2024. In January, energy prices decreased by 2.8%. Prices of household energy fell by 3.6% per annum. Compared with the same month of the preceding year, consumers mainly benefited from lower prices for firewood, wood pellets and other solid fuels (-11.2%), but also for electricity (-7.9%) and natural gas (-7.5%). Motor fuel prices dropped by 0.4% per annum. Meanwhile, prices for heating oil (+2.2%) and in particular district heating (+21.7%) increased compared to February 2023. Food prices rose by 0.9% per year after an increase of 3.8% per year in January. Meanwhile, the CPI excluding energy and food rose by 3.4% per annum (the lowest value) after a similar increase in January.
Destatis said that in February, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - rose by 0.6% on a monthly basis and by 2.7% per annum. In January, HICP fell by 0.2% m/m and rose by 3.1% per annum.