Germany’s annual inflation rate increased to 2.2% in November 2024, marking its highest point in four months. This rise came after October’s rate of 2% and was slightly below the expected 2.3%. A key factor behind the inflation surge was the 3% jump in core inflation, which excludes volatile items like food and energy. Food prices saw a more moderate increase of 1.8%, while energy costs continued to fall but at a slower pace, with a 3.7% drop compared to a 5.5% decrease in October.
Despite the uptick in annual inflation, consumer prices actually dropped by 0.2% month-over-month in November, reversing the 0.4% rise seen in October. This decline was in line with market forecasts. Services inflation held steady at 4%, while goods inflation, covering items such as electronics and clothing, eased from 2.3% in October to 1.8% in November.
Although inflation remains moderate, it still indicates ongoing pressure on household budgets due to rising prices. The EU-harmonized inflation rate, which compares inflation across EU countries, was 2.4% for November, meeting expectations.
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PRESS UPDATE