In recent years, due to epidemic situation, geographical conflicts and other factors, the inflation rate in Europe has been at a high level. According to reports, recently, the inflation rate in Germany is at its lowest level since June 2021. According to preliminary data released by the German Federal Statistical Office, the consumer price index (CPI) dropped to 3.2% in November, compared with 3.8% in October.
After -3.2% in October, energy prices fell to -4.5% year-on-year, which had a moderate impact on the inflation rate in November. In addition, food prices increased by 5.5%, which was not as good as that in previous months (6.1% in October). The inflation rate of service industry decreased from 3.9% in October to 3.4%, which was mainly due to the decrease of inflation rate of group travel. The main drivers of the decline are favorable cardinal utility in almost all economic sectors, as well as falling energy prices and prices of leisure, entertainment and hotel services. The only worrying fact is that food prices are still rising every month.
According to experts’ estimation, the overall inflation rate in Germany will further decrease in December and stabilize in the range of 2% to 3% in 2024. “Overall, we expect the inflation rate to remain basically unchanged in December, and then it will resume to decline in January, slightly higher than 3%.”
Post time: Dec-04-2023