Berlin: According to data released on Wednesday by the Federal Statistical Office (Destatis), the annual rate of inflation in Germany increased by 8.7% in January and by 1% in January.
Data that supported preliminary findings showed that consumer prices had increased 9.2% year over year when compared to those in other EU nations. The price increase from December to January was 0.5%.
The inflation rate is still high despite a slowdown at the end of last year, according to Ruth Brand, president of Destatis. Price increases for many goods and, to a greater and greater extent, for services are something we are seeing. Particularly for food and energy, households paid higher prices in January as well, she continued.
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In spite of relief measures, the report showed that energy product prices in January were 23.1% higher on an annual basis. According to Destatis, household energy costs saw a particularly significant increase this year, rising 36.5% over the previous year.
With respect to a year prior, food prices increased 20.2% in January. According to the report, the rate of food price growth was thus more than twice as high as the rate of general inflation.
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Comparing January 2023 to the same month the previous year, service prices increased by 4.5%. Home maintenance and repairs (+16.9%) and catering services in eateries, cafes, and the like (+10.9%) both saw above-average price increases.
The biggest economy in the EU experienced record inflation last year as a result of rising energy costs brought on by a decline in Russian natural gas imports as a result of sanctions relating to the Ukraine. Supply shortages were made worse by problems with pipeline maintenance and the sabotage of the Nord Stream pipelines.
Germany would avoid a sharp economic decline, according to Economy Minister Robert Habeck, but is expected to enter a technical recession.
