The inflation rate in Germany remained at 2.3 percent in November, the same level as in October. This was reported today by the Federal Statistical Office in a preliminary report. Consumer prices rose by 2.4 percent in September and 2.2 percent in August. Month-on-month, consumer prices fell by 0.2 percent.
German inflation accelerated unexpectedly
According to harmonized data used for comparison with other European Union countries, the inflation rate rose to 2.6 percent from 2.3 percent in October. Analysts surveyed by Reuters had expected it to rise to only 2.4 percent. Excluding volatile food and energy prices, inflation in November was 2.7 percent, according to preliminary data. It thus fell by 0.1 percentage point compared to October.
After Russia’s invasion of Ukraine in February 2022, energy prices in particular rose, pushing inflation in Germany to almost nine percent. On average, the inflation rate in Germany was 6.9 percent in 2022, 5.9 percent a year later, but only 2.2 percent last year. Even in 2021, average inflation in Germany was higher than it is now, at 3.1 percent.
After years of decline, a turnaround is coming
Germany is the largest economy in Europe and the Czech Republic’s largest trading partner. With many Czech companies dependent on the performance of the German economy. In the past two years, the German economy has declined.
At the end of September, five leading German economic institutes estimated that Germany’s gross domestic product (GDP) would increase by 0.2 percent this year and 1.3 percent next year. The government’s outlook, published in early October, is in line with the institutes’ forecasts.
Source: Reuters
