Particle.news
Download on the App Store
16 ARTICLES
·
2mo ago

Germany's Inflation Rate Drops to 2.3% in January, Surprising Economists

Lower energy costs and a slowdown in food price increases contributed to the unexpected decline in inflation, though some sectors continue to see rising prices.

Image
Image
Kassenzettel auf Einkaufsliste mit Lebensmitteln. Die Verbraucherpreise steigen weniger stark
Image

Overview

  • Germany's inflation rate fell to 2.3% in January 2025, down from 2.6% in December, marking the first decline after three consecutive monthly increases.
  • Energy prices dropped by 1.6% compared to January 2024, with decreases in household energy and fuel costs contributing significantly to the overall decline.
  • Food prices rose by only 0.8% year-over-year, a notable slowdown from the 2.0% increase recorded in December 2024, offering some relief to consumers.
  • However, services such as dining out, insurance, and public transportation saw price increases of 4.0%, with the Germany-wide transit ticket price rising from €49 to €58.
  • Economists forecast inflation to remain above the European Central Bank's target of 2.0% in the coming months, with a projected average rate of 2.5% for early 2025.