Inflation in Germany is on the decline and is now well away from the highs reached after the start of the Russian war of aggression on Ukraine. According to preliminary information from the Federal Statistical Office, the inflation rate in February was 2.5 percent. It was the lowest value since June 2021 at 2.4 percent. An annual inflation rate of 2.9 percent was recorded in January and 3.7 percent in December.
The authority is announcing details on the development of consumer prices in February today. Economists expect inflation to fall further over the course of the year. Higher inflation rates reduce the purchasing power of consumers. People can afford one euro less. Many people turned their back on consumption last year.
According to the statisticians’ preliminary data, energy became cheaper in February for the second month in a row, despite the price brakes that expired at the beginning of the year and the increase in the CO2 price to 45 euros per ton of carbon dioxide (CO2). Energy prices fell by 2.4 percent compared to the same month last year.
The rise in food prices is slowing
Food costs are expected to cost 0.9 percent more than in February 2023. The increase weakened and, according to the information, was below the general price increase rate for the first time since November 2021. In January, people had to pay 3.8 percent more for food than a year before.
After the Russian war of aggression against Ukraine began in February 2022, energy and food prices in particular rose sharply, driving up inflation overall. At 8.8 percent in autumn 2022, the inflation rate temporarily reached its highest level since reunification.
According to preliminary data, consumer prices rose by 0.4 percent in February compared to the previous month of January.
