Compared to the previous month, the indicator grew 0.2%
In January 2024, inflation in Germany slowed to 2.9% compared to January 2023. In December, the rate increased by 3.7% year on year. Thus, inflation in the country reached the lowest level since June 2021 (+2.4%). This is evidenced by data from the German Federal Statistical Office Destatis .
Compared to December 2023, the inflation rate in Germany increased by 0.2%.
Energy prices in January decreased by 2.8% compared to January 2023, restraining inflation. In December, this number increased by 4.1% per year.
Food prices increased by 3.8% year on year during the month, compared to 4.5% year on year in December.
In January, underlying inflation in Germany rose to +3.4%, slowing down from 3.5% in December.
As Compraço previously reported, inflation in Germany slowed to +5.9% in 2023, compared to +6.9% in 2022. In 2023, energy prices in Germany increased by 5.3% year on year, after a significant increase of 29.7% in 2022. Underlying inflation in 2023 was +5.1%, after +3.8% in 2022.
The German economy shrank by 0.3% in 2023 compared to 2022. The number fell for the first time since 2020, driven by high inflation, rising interest rates and the slowdown in economic activity, both domestically and abroad. Adjusted for inflation and calendar factors, Germany's economy shrank by 0.1% year on year in 2023.
