The inflation rate of consumer prices in Germany eased more than anticipated in January, falling to its lowest level in over two and a half years, according to preliminary data from Destatis released on Wednesday.
The annual increase in the consumer price index for January was noted as 2.9 percent, marking a deceleration from the 3.7 percent rise observed in December. This represents the slowest rate of inflation since June 2021, a time when the price increase was reported to be 2.4 percent.
The report identified a significant recent downturn in energy prices as the main factor for the current slowing of inflation. Energy prices saw a yearly decrease of 2.8 percent. On the other hand, the cost of food was found to be 2.8 percent higher.
When food and energy were factored out, the core inflation rate slightly reduced to 3.4 percent, down from 3.5 percent.
On a month-by-month basis, the consumer price index showed a growth of 0.2 percent in January, aligning with predictions.
Using the harmonised index of consumer prices as a basis, the inflation rate also dropped to 3.1 percent in January, down from 3.8 percent in the previous month. This was closely aligned with the predicted rate of 3.2 percent. On a monthly basis, the HICP demonstrated a 0.2 percent dip in January, which was slightly more than the 0.1 percent decrease that had been forecasted.
