Germany's annual inflation rate, measured by the Consumer Price Index (CPI), slowed to 2.3 per cent in January 2025, down from 2.6 per cent in December 2024, driven by weaker price increases for food and energy, according to the Federal Statistical Office (Destatis). Energy prices dropped 1.6 per cent year-on-year, with declines in household energy (2.5 per cent), electricity (3.6 per cent), and solid fuels (8.7). However, natural gas rose 0.5 per cent, and district heating surged 9.8 per cent. Food prices increased by 0.8 per cent, the lowest rise since December 2020, with notable gains in edible fats and oils. Core inflation, excluding food and energy, stood at 2.9 per cent, while services saw a significant price rise led by social institutions and insurance. Goods prices rose by 0.9 per cent, with non-alcoholic beverages and tobacco products up 5.8 per cent. The Harmonised Consumer Price Index (HCPI) confirmed a 2.8 per cent annual increase and a 0.2 per cent decline compared to the previous month. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
