Inflation in Germany is weakening. In July, consumer prices rose by 6.2 percent – and thus less strongly than in the previous month. Despite the decline, inflation remains at a high level.
Inflation in Germany weakened slightly in July. The Federal Statistical Office announced today that goods and services cost an average of 6.2 percent more than a year ago because food prices are no longer rising so sharply. This confirmed the previous estimate from the end of July. In June the annual inflation rate was 6.4 percent, in May it was 6.1 percent.
“The inflation rate has weakened somewhat, but remains at a high level,” Ruth Brand, President of the Authority, explained the results. “Especially the price development of food continues to drive inflation.” In addition, energy prices increased somewhat more than in the two previous months.
Bread 16 percent more expensive
Food prices rose by eleven percent in July compared to the same month last year. The prices rose somewhat less sharply than in June. At 5.7 percent, energy prices increased more strongly again. Electricity increased in price by 17.6 percent.
Nevertheless, consumers had to pay noticeably more for sugar, jam, honey and other confectionery (+18.9 percent). Bread and grain products (+16.6 percent), vegetables (+15.7 percent) and fish, fish products and seafood (+14.1 percent) also became noticeably more expensive within the year. On the other hand, edible fats and oils were 12.9 percent cheaper than a year earlier.
Services cost an average of 5.2 percent more than a year earlier. Customers had to dig deeper into their pockets, especially for package tours. Here the prices climbed by nine percent. Goods rose overall by 7.0 percent compared to the same month last year. Anyone who buys material at the start of school after the summer holidays sometimes has to spend significantly more than they did a year ago. For example, the prices for paper products such as exercise books or drawing pads rose by 13.6 percent in July.
Downward trend in inflation?
Compared to June, consumer prices rose by a total of 0.3 percent in July. Here, too, the statisticians confirmed the preliminary figures. Inflation has been a burden for consumers for months. Inflation is now a long way from its highest level since reunification at 8.8 percent in autumn 2022.
However, the data as a whole showed that the downward trend in inflation was broadening, explained the scientific director of the trade union-affiliated IMK Institute, Sebastian Dullien. He expects a sharper decline in September.
The European Central Bank, which recently raised its key interest rate for the ninth time in a row – to the highest level since 2000, is likely to contribute to this. IMK expert Dullien emphasized that the central bankers should urgently take a break from raising interest rates. “The historically unique interest rate hikes by the ECB are far from having their full effect.”