According to preliminary data released by the Federal Statistics Office on Thursday, Germany saw a dampening in its inflation in June as a result of lower energy and food prices. The current German consumer prices, harmonized to compare with other European Union countries, had risen by 2.8% year-on-year in May. Following this, a slight decline was noticed due to a 2.1% dip in energy product prices compared to the drop in prices in May 2023 (1.1%). The statistics examine price fluctuations in various basket items used to calculate the inflation rate.
In June 2024, the inflation rate excluding energy was up by 2.7%. The inflation rate excluding food and energy, often referred to as core inflation, rose to 2.9%, below the 3% mark for the first time since February 2022. These indicators also make it clear that inflation in other important goods sectors was higher than overall inflation. Both figures have been significantly above overall inflation since January 2024. The change in the Consumer Price Index, excluding food and energy, compared with the same month a year earlier was up by 3% in April and May 2024. Beyond inflation observed among varied basket items in the German CPI, the overall price of services was 3.9% higher than in the same month a year earlier and thus markedly higher than the overall inflation rate.
When compared to prices in May 2024, Germany witnessed a 0.1% rise in its Consumer Price Index, with domestic flight prices showing the greatest hike of 9%. This rise in flight prices also influenced the price of holiday packages, which rose by 5% in June.
