Germany experienced a notable increase in consumer price inflation in December to the highest rate in nearly a year, as confirmed by the final data released by Destatis on Thursday.
The consumer price index rose by 2.6% in December, up from a 2.2% increase in November, aligning with the preliminary figures released on January 7. This marks the highest inflation rate since January when prices rose by 2.9%.
Conversely, EU-harmonized inflation remained steady at 2.8% in December, although November's rate was adjusted upward from 2.4%.
In December, the decline in energy prices, while still present, exerted less influence in mitigating the overall inflation rate. The annual decline in energy product prices tapered to 1.6% in December, compared to a 3.7% decrease in November. Goods prices grew by 1.4% on a yearly basis, and service prices continued their above-average increase, reaching 4.1%.
Food prices saw a 2.0% rise compared to last year. Excluding food and energy, core inflation stood at 3.3% in December.
On a month-to-month basis, consumer prices increased by 0.5% in December, revised upward from an initial estimate of 0.4%, with the Harmonized Index of Consumer Prices (HICP) rising by 0.7%.
The average annual inflation rate for 2024 was projected at 2.2%, showing a significant decrease from the estimated 5.9% in 2023.
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