German Inflation Rate Confirmed at 2.2% in November 2024
The German Federal Statistical Office (Destatis) has confirmed the inflation rate for November 2024 at 2.2 percent. In October, a similar forecast was published, and in October itself, the rate was at 2.0 percent. The inflation rate had been below 2 percent for two months prior to that (September: 1.6 percent, August: 1.9 percent).
According to the office, the significant price increases in services, particularly in the field of energy, had a counter-inflationary effect. However, this was less pronounced than in the previous months. Compared to the previous month, prices fell by 0.2 percent in November.
The prices of energy products were 3.7 percent lower in November than in the same month of the previous year. The price decline has continued to weaken, following -5.5 percent in October and -7.6 percent in September. Within the year, the prices of fuels (-6.6 percent) and household energy (-12.5 percent for light heating oil and -11.8 percent for solid fuels, wood pellets, and the like) have decreased. Electricity, on the other hand, was 4.1 percent cheaper than in November 2023. In contrast, district heating was still significantly more expensive, at 30.7 percent higher.
Food prices rose by 1.8 percent in November compared to the same month of the previous year. The price increase in food has, however, decreased within the year, following 2.3 percent in October. Sweets and oils, including butter (38.9 percent), olive oil (13.3 percent, but sunflower oil, rapeseed oil, and the like, -7.9 percent), were significantly more expensive than a year earlier. Consumers also had to pay more for sugar, jam, honey, and other sweeteners (3.1 percent) and chocolate (9.5 percent), while there was a significant price decrease for sugar (-23.0 percent).
In November 2024, the core inflation rate, excluding energy and food, was 3.0 percent, and the rate excluding energy, food, and the like, was 2.9 percent. These indicators have been significantly above the overall inflation rate since January 2024, indicating that the price increase in other important good categories has been above average.
Service prices, in general, were 4.0 percent higher in November than in the same month of the previous year and remained significantly above the overall inflation rate. In October, the price increase in services was also 4.0 percent. The prices of services, including health services (6.1 percent), car maintenance and repair (5.6 percent), and water supply and other services for the home (4.6 percent), have increased. Only a few services, such as telecommunications (-0.9 percent), were cheaper than in the previous year.
The overall price index for consumer goods and services increased by 0.7 percent from November 2023 to November 2024. The prices of consumer goods (0.8 percent) rose slightly more than those of durable goods (0.5 percent). In addition to the increase in food prices (1.8 percent), some products became significantly more expensive, such as tobacco products (6.8 percent) and non-alcoholic beverages (6.6 percent). There were also price decreases, such as in furniture and lighting (-0.8 percent).
Compared to October 2024, the consumer price index fell by 0.2 percent in November. Seasonally, the prices of air travel (-15.2 percent) and package tours (-13.2 percent) decreased. Energy prices, in general, fell by 0.2 percent, with light heating oil being 1.9 percent cheaper. Food prices, in general, remained almost constant (+0.1 percent), with the exception of the increase in the price of butter (2.7 percent) and the decrease in the price of sugar (4.4 percent). Notably, clothing and shoes (0.6 percent) became more expensive in November.