Germany’s inflation rate rose to 2.2% in November 2024, as measured by the year-on-year change in the consumer price index (CPI), up from 2.0% in October. This marks an increase after two months of inflation below 2%, following rates of 1.6% in September and 1.9% in August. According to the Federal Statistical Office (Destatis), the inflation uptick was primarily driven by significant price increases in services, while energy prices had a smaller dampening effect on inflation than in previous months. Compared to October, consumer prices fell by 0.2% in November.
Germany’s Inflation Hits 2.2% in November 2024, Driven by Rising Costs
Energy prices saw a notable decline of 3.7% compared to November 2023, continuing a trend of falling energy costs seen in the preceding months. Motor fuel prices dropped by 6.6%, and household energy costs, including heating oil and firewood, were also lower. However, the cost of district heating rose sharply, up 30.7% year-on-year.
Food prices saw a 1.8% increase in November 2024 compared to the previous year, slightly slowing from the 2.3% rise in October. Among food categories, edible fats and oils saw the highest increases, with butter prices soaring by 38.9%. However, sugar prices experienced a significant drop of 23.0%.
Core inflation, excluding food and energy, stood at 3.0% in November, continuing the trend of higher inflation in other product groups. Services, in particular, experienced a price surge, rising by 4.0% compared to November 2023. Notable price increases were in insurance services, airfares, and restaurant services. Prices for goods overall were up by 0.7%, with tobacco products and non-alcoholic beverages seeing significant price hikes.
On a month-to-month basis, the CPI fell by 0.2%, largely driven by seasonal drops in airfares and holiday packages.
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