Germany's inflation rate at 3.7% in December 2023

A significant factor in the inflation dynamics for December 2023 is the 4.1 per cent increase in energy prices compared to the same month in the previous year. This surge is largely attributed to a base effect stemming from the ‘December immediate assistance’, a one-off measure introduced by the Federal Government in December 2022. This measure initially dampened the overall index in December 2022 but has contributed to an upward shift in the index for December 2023.

Additionally, the harmonised index of consumer prices in December 2023 is provisionally estimated to have risen by 3.8 per cent compared to the same month a year earlier. It also shows a 0.2 per cent increase compared to the previous month. On an annual basis, the harmonised index for 2023 is provisionally calculated to have increased by 6 per cent when compared with 2022, as per Destatis.

ALCHEMPro News Desk (DP)