Monthly inflation in Germany stands at 0.5 percent in December, surpassing estimates
Date
1/16/2025 6:56:41 AM
(MENAFN) Germany’s monthly inflation rate stood at 0.5 percent in December 2024, slightly above the preliminary estimate of 0.4 percent, according to data released by Destatis on Thursday. The increase was largely driven by seasonal factors, particularly in the travel sector, with prices for package holidays surging by 9.2 percent during the month. Additionally, rail prices rose as part of the annual price adjustment, with long-distance transport seeing a 4.2 percent increase and local transport rising by 3 percent.
On an annual basis, consumer prices in 2024 were 2.2 percent higher compared to 2023, aligning with earlier preliminary results published on January 7. This marks a significant reduction in inflation compared to the preceding years. In contrast, the annual inflation rate averaged 5.9 percent in 2023, 6.9 percent in 2022, and 3.1 percent in 2021, reflecting a downward trend in overall price growth over recent years.
Several categories contributed to the annual rise in consumer prices. Insurance services saw the steepest increase at 13.2 percent, followed by social institutions (7.8 percent), restaurant services (6.8 percent), and vehicle maintenance and repair (6.1 percent). These sectors highlighted continued pressure on consumers despite the overall decline in headline inflation.
Core inflation, which excludes volatile energy and food prices, rose by 3.0 percent in 2024. This was a noticeable drop from the 5.1 percent increase in 2023 and 3.8 percent rise in 2022, suggesting that underlying inflation pressures, while still present, have eased significantly over the past year.
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