Germany's inflation rate 6.1% in Aug 2023; core inflation at 5.5%

“The inflation rate therefore remains at a high level”, said Destatis president Ruth Brand.

“The increases in energy and food prices exceed overall inflation and keep the inflation rate high. The base effect stemming from last year’s 9-euro ticket was also apparent in August, when it drove inflation up and reduced the dampening effect of the Germany ticket on prices. This base effect will cease to apply from the next month onwards”, she added.

The CPI was up by 0.3 per cent month on month (MoM) in August.

Energy product prices in August were 8.3 per cent higher YoY, following a 5.7 per cent increase in July. Electricity, in particular, cost substantially more in August (16.6 per cent more) year on year.

Excluding energy prices, the inflation rate stood at 5.9 per cent in August. When energy and food prices are excluded, the inflation rate was somewhat lower (5.5 per cent). This rate, i.e., core inflation, simultaneously demonstrates that inflation also remains high in other product groups.

The prices of goods were up by 7.1 per cent YoY in August. The prices of durable consumer goods rose by 4.7 per cent YoY.

ALCHEMPro News Desk (DS)