According to the final report from the Federal Statistical Office (Destatis), in July, consumer prices rose by 2.3% per annum, as expected, after an increase of 2.2% per annum in June. On a monthly basis, consumer prices rose by 0.3% after an increase of 0.1% in June. Economists also expected an increase of 0.3%.
“Decreases in energy prices, in particular, are having a dampening effect on the rate of inflation. By contrast, we continue to see above-average increases in service prices," says Ruth Brand, President of the Destatis.
The data also showed that in July, energy prices fell by 1.7% per year after declining by 2.1% per year in June. The prices of both household energy (-3.6%) and motor fuels (-0.4%) were down year on year. Price reductions were recorded for firewood, wood pellets and other solid fuels (-13.9%), electricity (-6.2%), and natural gas (-3.3%). By contrast, the prices of some energy products were higher than a year earlier, especially district heating (+31.0%) and heating oil (+7.7%). Food prices rose by 1.3% per year after an increase of 1.1% per year in June.
Meanwhile, the CPI excluding energy and food rose by 2.9% per year (the lowest value since February 2022) after a similar increase in June.
Destatis said that in July, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - rose by 0.5% on a monthly basis and by 2.6% per annum. In June, HICP increased by 0.2% m/m and by 2.5% per annum.