10 and 20 banknotes on concrete surface
  • February inflation drops from 2.9% in January, marking continued decline from December’s 3.7%
  • Lowest rate since June 2021, indicating a significant easing in price pressures

Wiesbaden, Germany — Germany’s inflation rate, measured by the year-on-year change in the Consumer Price Index (CPI), has fallen to 2.5% in February 2024, a notable decline from 2.9% in January and 3.7% in December 2023.

This February rate is the lowest since June 2021, which recorded a 2.4% inflation rate, Destatis said Tuesday.

“The inflation rate continues to weaken,” states Ruth Brand, President of the Federal Statistical Office. She points out the significant factors contributing to this trend: “There’s a continuing relaxation in energy prices.

Additionally, the rate of price increase for food has significantly slowed down, now sitting below the overall inflation rate for the first time in over two years,” Brand elaborates.

As reported by the Federal Statistical Office (Destatis), consumer prices in February 2024 rose by 0.4% compared to the previous month, January 2024. This change indicates a steady yet gradual rise in consumer prices, suggesting a stabilization in the economic climate.

The easing of the inflation rate, especially in key sectors like energy and food, offers a sigh of relief to consumers and policymakers alike. It signals a potential shift towards a more stable economic environment after periods of heightened inflationary pressures. However, it remains critical to observe future trends to understand the long-term trajectory of the economy fully.

In conclusion, the decline in Germany’s inflation rate in February 2024 marks a significant easing of price pressures, largely attributed to the cooling down of energy prices and a slowdown in food price inflation. This development is a positive sign for the German economy, indicating a move towards stabilization after a turbulent period.

By Silvia Orfeo

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

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