Inflation in Germany remains stubbornly above the six percent mark despite another decline. In August, consumer prices were 6.1 percent higher than in the same month last year, as calculated by the Federal Statistical Office. The Wiesbaden authority has now confirmed its inflation estimate published at the end of August.
After an interim increase to 6.4 percent in June of the current year, the annual inflation rate fell to 6.2 percent in July. In May 2023, however, the rate was already at 6.1 percent. From July to August of the current year, consumer prices increased by a total of 0.3 percent – the Federal Office also confirmed its estimate here.
“The inflation rate remains at a high level,” said the President of the Federal Statistical Office, Ruth Brand. “Price increases for food and energy are above overall inflation and are keeping the inflation rate high.”
The biggest price driver recently was food, which was 9.0 percent more expensive in August than a year earlier. People had to pay 8.3 percent more for energy.
Economists expect inflation rates to fall
The stubbornly high inflation is causing problems for consumers; people can afford less for their money. After all, the inflation rate is now a long way from its highest level since German reunification at 8.8 percent in autumn 2022.
Many economists expect inflation rates to continue falling in the coming months because the effect of the 9 euro ticket and the fuel discount will then no longer apply compared to the previous year. In the summer of 2022, the 9-euro ticket, which was limited to three months, and the fuel discount temporarily slowed the rise in consumer prices.
