German inflation dips to lowest in more than 3 years
October 11, 2024
German consumer prices rose by 1.6% compared to the previous year, Germany's Federal Statistical Office, Destatis, announced on Friday in initial estimates.
The last time the inflation rate was even lower was more than three years ago, in February 2021, when it was 1.5%.
How the figures break down
The downward inflation trend was largely driven by a 7.6% drop in energy prices.
In August, the total increase in consumer prices was 1.9%, while energy prices fell by 5.1%.
Heating oil was 17.9% cheaper in September than the same month the previous year, with electricity down 6.4% and natural gas 1.9% lower.
Meanwhile, food price inflation for September rose slightly to 1.6% from 1.5% in August. Edible fats and oils were noticeably more expensive year-on-year (with olive oil up 29.6 % and butter by 29.3 %).
The overall inflation plunge would have been greater had it not been for above-average price rises for services.
That rate did fall slightly to 3.8%, having remained constant at 3.9% for several months.
"The renewed price declines for energy dampened the inflation rate in September 2024 more than in the previous months," Destatis President Ruth Brand said.
"In contrast, the continued above-average price increases for services had an inflationary effect," she added.
rc/rmt (dpa, AFP)