The inflation rate in Germany, measured as the annual change in the consumer price index (CPI), was +2.3% in July 2024. The rate of change was +2.2% in June 2024 and +2.4% in May 2024. “The declines in energy prices, in particular, have a dampening effect on the inflation rate,” says Ruth Brand, President of the Federal Statistical Office (Destatis).
“In contrast, we continue to see above-average increases in service prices,” adds Brand. Compared to June 2024, consumer prices rose by 0.3% in July 2024. Prices for energy products fell by 1.7% year-on-year in July 2024 (June 2024: -2.1%). In July 2024, energy product prices fell by 1.7% compared to the same month of the previous year, after having fallen by 2.1% in June 2024. Household energy prices were particularly affected, falling by 3.6% compared to the previous year. Motor fuel prices also fell slightly by 0.4% over the same period.
Consumers continued to benefit from the decline in prices for firewood, wood pellets and other solid fuels, which fell by 13.9%, as well as electricity prices, which fell by 6.2%, and natural gas, which fell by 3.3%. In contrast, prices for some energy products rose, such as central heating, which increased by 31.0%, and heating fuel, which increased by 7.7%. Food prices rise by 1.3% in July 2023: Food prices (in German only) rose by 1.3% in July 2024 compared to the same month of the previous year. Food prices thus accelerated again (June 2024: +1.1%), but the rate of increase was still lower than overall inflation.
Significant year-on-year price increases continued for edible fats and oils (+14.3%, including olive oil (German only): +45.0%) and sugar, jam, honey and other confectionery (+6.1%, including chocolate (German only): +10.7%).
Inflation rate excluding food and energy at +2.9%
In July 2024, core inflation, which excludes food and energy, was +2.9%. By contrast, headline inflation excluding energy prices was +2.7% in the same month. It is noted that core inflation, which reflects the change in prices of goods and services excluding food and energy, remained at a level close to 3%, compared to +2.9% in June 2024. Over the course of the year, these rates have significantly outpaced headline inflation since January 2024, indicating that price increases were particularly marked in other categories of goods and services.
Services prices increased by 3.9% year-on-year: In July 2024, services prices saw a significant increase of 3.9% compared to the same month of the previous year. This increase is much larger than the overall inflation rate. Since May 2024, services prices have maintained this increase at +3.9%.
During the period from July 2023 to July 2024, some service categories saw notable increases, including insurance services, which rose by +13.9%, with transport insurance recording a significant increase of +29.4%. Prices of social utilities services also increased by +8.1%, and catering services in restaurants and cafes by +6.7%. In addition, vehicle maintenance and repair prices increased by +5.9%, water supply and housing-related services by +4.7%, and leisure and sports services by +4.6%.
In contrast, net rents, excluding heating costs, increased by +2.2%, which is slightly lower than overall inflation. Some services saw a decrease in prices compared to the same month of the previous year, such as international air tickets, which fell by -1.8%, and communications services, which fell by -0.2%. The rate of price increase depends not only on how prices change. The weights with which trends in the prices of individual goods and services are reflected in the CPI are also important.
Prices rose by 0.3% compared to the previous month
Compared to June 2024, the CPI rose by 0.3% in July 2024. In the summer travel season, price increases were recorded especially for airline tickets (+18.3%) and all-inclusive holidays (+10.1%). Consumers also had to pay significantly more for transport insurance (+4.8%). Energy prices (in aggregate) also rose slightly (+0.3%). For example, prices for district heating (+2.6%), heating fuel (+1.5%) and motor fuel (+0.6%) rose. Food prices (in aggregate) remained virtually unchanged (-0.1%). By contrast, clothing prices fell (-4.8%), also due to the season.
In the euro area, the Harmonized Consumer Price Index (HCI) is used for monetary policy purposes. Although the two indices serve different purposes, they differ in terms of coverage, methodology and weights, which explains the discrepancy between the CPI and the HARCI in Germany. In addition to the HSPI, the CPI also includes household expenditure on owned housing, games of chance and broadcasting fees. The product weights of the HSPI are updated annually. For more details, please refer to the explanatory notes available on the Federal Statistical Office website, as well as the results and methodological information on the HSPI.
Inflation calculator for the personal inflation rate: Consumers can use the HSPI personal inflation calculator to adapt their monthly consumer expenditure on individual product groups to their own consumption patterns and calculate their personal inflation rate. In addition, the price chart provides an overview of the price trend and the weights of the various products
German government measures and their impact on the consumer price indices: The development of consumer prices, especially with regard to energy prices (domestic energy and fuel), has put a significant financial strain on private households in 2022 in particular, but has also posed and continues to pose a challenge for many people in subsequent years. For this reason, since the spring of 2022.
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