Germany's inflation rate reaches 8.7% in January 2023: Destatis

Energy and food prices, in particular, have increased considerably since the war started in Ukraine and have had a substantial impact on the inflation rate. Due to the situation of war and crisis, delivery bottlenecks and price movements at upstream stages in the economic process also have an impact on the inflation rate, which in turn leads to price increases for other goods. As part of the federal government’s third relief package, measures have been adopted to curb inflation. This is reflected in the consumer price index.

Energy product prices in January 2023 were 23.1 per cent higher YoY despite the relief measures. The main reason of the price increase observed in January 2023 probably was the end of the December immediate assistance. The increase in energy prices is slowed to some extent by the electricity, natural gas and district heating price freezes. The development of energy prices is however influenced by many factors, including international purchase prices, as per Destatis.

Excluding energy prices, the inflation rate stood at 7.2 per cent in January 2023. The inflation rate excluding energy and food nevertheless shows that inflation is high also for other product groups. This rate had been above the five-per cent threshold already in December 2022 (5.2 per cent) and it rose further in January.

The prices of goods (total) were up 12.7 per cent in January 2023 compared with the same month a year earlier. Prices of durable consumer goods were up 6.2 per cent on the same month of the previous year.

Compared with December 2022, the consumer price index rose by 1 per cent in January 2023. Total energy prices increased by 8.3 per cent.

Fibre2Fashion News Desk (DP)