Germany's inflation rate at 3.7% in December 2023

05 Jan '24

1 min read

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Insights

In December 2023, Germany's inflation rate reached 3.7 per cent, with consumer prices up 0.1 per cent from November, per Destatis data.
The 2023 annual average inflation is expected at 5.9 per cent.
Energy prices rose 4.1 per cent, influenced by the 2022 'December immediate assistance'.
The harmonised consumer price index increased by 3.8 per cent YoY.

Germany's inflation rate was 3.7 per cent in December 2023, according to the provisional data by Federal Statistical Office (Destatis). This estimate follows a moderate increase in consumer prices of 0.1 per cent in November 2023. Furthermore, the annual average inflation rate for 2023 is expected to stand at 5.9 per cent.

A significant factor in the inflation dynamics for December 2023 is the 4.1 per cent increase in energy prices compared to the same month in the previous year. This surge is largely attributed to a base effect stemming from the ‘December immediate assistance’, a one-off measure introduced by the Federal Government in December 2022. This measure initially dampened the overall index in December 2022 but has contributed to an upward shift in the index for December 2023.

Additionally, the harmonised index of consumer prices in December 2023 is provisionally estimated to have risen by 3.8 per cent compared to the same month a year earlier. It also shows a 0.2 per cent increase compared to the previous month. On an annual basis, the harmonised index for 2023 is provisionally calculated to have increased by 6 per cent when compared with 2022, as per Destatis.

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