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Economic news
06.01.2025

Germany’s annual CPI soars 2.6 per cent in December

Germany's Federal Statistical Office (Destatis) informed on Monday the country’s consumer price index (CPI) is estimated to climb by 0.4 m-o-m in December 2024 after dropping by 0.2 per cent m-o-m in November. 

On a y-o-y basis, Germany’s CPI is seen to surge by 2.6 per cent in December,  following a 2.2 per cent climb in the previous month.  That would be the strongest annual gain since January 2024 (+2.9 per cent). 

Economists had forecast CPI would advance 0.3 per cent m-o-m and 2.4 per cent y-o-y in December.

According to the report, energy prices dropped by 1.7 per cent y-o-y this month, following a plunge of 3.7 per cent y-o-y in November. Meanwhile, food prices increased by 2.0 per cent y-o-y, accelerating from a 1.8 per cent y-o-y rise in the previous month. The services costs went up 4.1 per cent y-o-y, slightly hastening from 4.0 per cent y-o-y in November.

The harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is estimated to jump by 0.7 per cent m-o-m (the most since March 2023 (+1.1 per cent m-o-m)) and by 2.9 per cent y-o-y (the most since January 2024 (+3.1 per cent y-o-y)). Economists had predicted a 0.5 per cent m-o-m advance and a 2.6 per cent y-o-y soar for December. In November, the German HICP fell by 0.7 per cent m-o-m and rose by 2.4 per cent y-o-y.

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