Euro Sign in Frankfurt (by Stephan Rückert)Euro Sign in Frankfurt, Willy Brandt Platz (by Stephan Rückert)
  • German Inflation Rate Drops to Lowest Since June 2021
  • Consumer Price Index (CPI) indicates a 2.9% increase year-over-year in January 2024, with a slight rise from the previous month
  • Excluding food and energy, the core inflation rate is likely to be around +3.4%.

(Wiesbaden, Germany) Germany’s inflation rate in January 2024 is set to be +2.9%, marking the lowest rate since June 2021, which stood at +2.4%, Destatis said Wednesday. The inflation rate is measured by the year-over-year change in the Consumer Price Index (CPI). Preliminary results from the Federal Statistical Office (Destatis) also indicate that consumer prices are expected to rise by 0.2% compared to December 2023.

This modest increase in consumer prices reflects a stabilizing economic environment, suggesting a possible easing of the inflationary pressures that have been a concern in recent years. The CPI measures changes in the price level of a market basket of consumer goods and services purchased by households.

The core inflation rate, often referred to as the inflation rate excluding food and energy prices, is expected to be around +3.4%. This rate is typically analyzed to understand the underlying inflation trends, as it excludes items with volatile price movements.

While the slight increase from the previous month indicates ongoing economic activity, the overall reduction in the annual rate suggests a more stable pricing environment. This development could have significant implications for consumer spending and confidence, as well as for the broader economic policies in the Eurozone.

By Silvia Orfeo

Silvia Orfeo is a Sr. Politics and Economics Reporter at Nobot.News

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