German CPI inflation rate 2.3% in Jan 2025

The development of energy prices had a downward effect on inflation in January 2025. On the other hand, above-average increases in service prices continued to drive up inflation.

Compared with December 2024, consumer prices were down by 0.2 per cent in January 2025, a Destatis release said.

The prices of energy products in January this year were 1.6 per cent lower year on year (YoY). The decline in prices was 1.6 per cent in December 2024 already.

Excluding energy prices, the inflation rate stood at 2.7 per cent in January. The inflation rate excluding food and energy, often referred to as core inflation, was 2.9 per cent in the month. Both rates have exceeded overall inflation for more than a year, thereby demonstrating that inflation was above average in other important product groups.

The prices of goods (total) were up by 0.9 per cent YoY in January 2025. The 0.9-per cent price increase observed for non-durable consumer goods was slightly larger than for durable consumer goods (plus 0.5 per cent).

Fibre2Fashion News Desk (DS)