German consumer prices were 2.3% higher in February than in the same period last year, the Federal Statistical Office announced on Friday, based on preliminary inflation data.
This means that the year-on-year increase in prices remained the same in February as it was in January.
At the start of the year, price increases in Germany slowed following three consecutive rises, contrary to the expectations of many economists. In December, the inflation rate stood at 2.6%.
From January to February this year, goods and services became 0.4% more expensive, according to preliminary data from the statisticians in the city of Wiesbaden.
Encouragingly, core inflation – which excludes the volatile prices of energy and food – fell to 2.6% in February. In January, this figure, which many economists consider a better indicator of inflation trends than the overall rate, stood at 2.9%.
Inflation expected to decline in 2025
In surveys, consumers repeatedly cite the fear of rising living costs as one of their greatest concerns. Higher inflation rates reduce purchasing power, as people can afford less for the same amount of money.
Energy and food prices rose sharply following the start of Russia’s all-out invasion of Ukraine three years ago. Inflation in Germany peaked at 8.8% in late 2022.
The major wave of price increases has since subsided. Many economists expect inflation in Germany to continue to decline. For the current year, they forecast an average inflation rate of just over 2%, similar to the 2.2% rate recorded in 2024.
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