German CPI inflation rate 3.2% in Nov, consumer prices fall 0.4% MoM

In October, the inflation rate was 3.8 per cent.

The last time inflation was lower than this November was in June 2021, when was 2.4 per cent.

“The rate of inflation has slowed for the fifth consecutive month”, said Destatis president Ruth Brand in a release.

“In October and November 2023, many energy products, in particular, cost less than they did a year earlier. The price situation here has clearly eased. The YoY rate of increase in food prices has also continued to slow, but is still markedly higher than overall inflation,” she added.

Energy product prices in November 2023 were 4.5 per cent lower YoY, and therefore, had a dampening effect on the inflation rate, as was also the case in October this year.

The price decreases since October this year have primarily been due to the high level of energy prices in 2022, a year marked by war and crisis.

Excluding energy prices, the inflation rate stood at 4 per cent in November this year. When food and energy prices are excluded, the inflation rate was 3.8 per cent. These rates also demonstrate that inflation remains high in other product groups and exceeds overall inflation.

However, the YoY change in CPI excluding food and energy, often referred to as core inflation, has slowed gradually, and dropped below the 4 per cent mark in November this year for the first time since August last year.

Goods prices increased by 3 per cent in the period from November 2022 to November 2023, with the prices of non-durable consumer goods rising by 2.9 per cent.

ALCHEMPro News Desk (DS)