Germany’s inflation rate fell to 3.2% in November, Destatis says

The Federal Statistics Agency (Desatis) confirmed today that Germany’s annual inflation rate fell to 3.2% in November, the lowest level since June 2021 (+2.4%) and against 3.8% in October.

The slower price rise in November compared to the same month last year is due to the greater decline in energy costs, with a year-on-year decline of 4.5% (compared to a 3.2% rise in the previous month). While food prices rose by 5.5% (when they rose by 6.1% in October),

“Inflation rate [medida pelo Índice de Preços no Consumidor] “Growth slowed for the fifth month in a row,” said Ruth Brand, head of the Federal Statistical Office, noting that the cost of many energy products in October and November was lower than in the previous year.

The decline in energy product prices since October reflects the high level of energy prices in 2022, a year marked by wars and crises.

On the other hand, the annual rate of increase in food prices has continued to slow, but is still higher than global inflation.

The largest increases were recorded in fruits (+12.0%), sugar, jams, honey and other confectionery products (+11.9%), while bread and cereals (+9.4%), vegetables (+7.3%) and fish, fish products and seafood (+9.4%). Seafood (+7.1%) was also significantly more expensive. ‘

On the other hand, the prices of butter (-24.8%), sunflower oil, rapeseed oil and similar products (-17.3%) fell significantly, while the prices of olive oil (+43.5%) rose sharply.

Likewise, services increased by 3.4% in November, year-on-year, half a percentage point lower than in October, while goods saw their costs rise by 3%, compared to 3.6% in October.

The inflation rate excluding food and energy, often referred to as core inflation, is expected to reach 3.8% in November.

On the other hand, the harmonized inflation value, which Eurostat uses in its statistics, was 2.3%, compared to 3% in October, which is also the lowest level since 2021.

Today’s data confirms the initial estimate published by Destatis on November 29.