According to initial estimates from Germany’s Federal Statistical Office, Destatis, consumer prices in Germany rose by 1.6% compared to the previous year. This marks a significant increase from the last measurement, which was 1.5% over three years ago in February 2021.

Breaking Down the Figures

The rise in inflation was primarily driven by a 7.6% decrease in energy prices. In August, consumer prices increased by 1.9%, while energy prices saw a 5.1% decline. Notably, heating oil was 17.9% cheaper, electricity was down 6.4%, and natural gas was 1.9% lower compared to the previous year.

On the other hand, food prices saw a slight increase in September, rising to 1.6% from 1.5% in August. Edible fats and oils, such as olive oil and butter, experienced significant price hikes of 29.6% and 29.3%, respectively.

The overall inflation rate would have been even lower if not for the above-average price increases in services, which saw a slight decrease to 3.8% in September.

Destatis President Ruth Brand noted that the decline in energy prices had a significant impact on the inflation rate, while services continued to have an inflationary effect.

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