Inflation Eases Across Germany in 2024, but Energy and Service Costs Show Mixed Trends

While overall inflation rates declined significantly compared to prior years, regional variations and sector-specific price shifts highlight a complex economic landscape.

Germany's national inflation rate averaged 2.2% in 2024, a sharp drop from the 6%+ rates seen in 2022 and 2023, reflecting easing price pressures.
Energy prices, including heating oil and electricity, declined in most regions, though exceptions like rising district heating costs created disparities.
Food prices saw modest increases nationwide, with notable spikes in specific items such as oils, fats, and butter, while some products like citrus fruits became cheaper.
Service sectors, including hospitality, insurance, and eldercare, experienced significant cost increases, with care services rising by up to 13% in some regions.
Regional inflation rates varied, with states like Berlin showing the lowest (1.6%) and others like Saarland and Saxony reporting higher year-end figures of 3.1% and 2.9%, respectively.