By Ed Frankl
Preliminary data from the German statistics office Destatis revealed that German inflation experienced a rise in December, marking a deviation from the recent trend of easing consumer prices. In comparison to the same month in the previous year, consumer prices in December 2023 were 3.7% higher, up from 3.2% in November. This aligns with the consensus among economists polled by The Wall Street Journal.
A significant factor contributing to this increase was the energy sector, as energy prices rose by 4.1% year on year. In November, energy prices had fallen by 4.5%. These fluctuations can be attributed to government relief measures implemented in the prior year, which cushioned gas and heating bills.
While food prices also experienced an increase, it was at a slightly slower pace. Food prices rose by 4.5%, down from a rise of 5.5% in November, according to Destatis.
The December data also revealed core inflation, which excludes volatile food and energy prices. Core inflation decreased to 3.5% in December, compared to 3.8% in November.