Inflation in Germany has descended well below the peaks reached after the start of the Russian war against Ukraine, declining to 2.5% in February, Federal Statistics Office Destatis said on Tuesday, confirming preliminary figures.
This was the lowest rate recorded since June 2021, when inflation stood at 2.4%. An annual inflation rate of 2.9% was recorded in January and 3.7% in December.
“The price situation in the energy sector is continuing to ease. The rise in food prices has slowed considerably and is now below overall inflation for the first time in more than two years,” said Destatis head Ruth Brand.
Higher inflation rates reduce the purchasing power of consumers. Many German consumers cut back on consumption last year.
February was the second month in a row that energy became cheaper, despite the price brakes that expired at the beginning of the year and the increase in the carbon dioxide (CO2) price to €45 ($46) per ton.
Energy prices fell by 2.4% compared to the same month last year.
Food cost 0.9% more than in February last year, meaning that the rate of increase has weakened and, according to the data, was below the general rate of price increases for the first time since November 2021.
In January, people still had to pay 3.8% more for food than a year earlier.
Following the start of the Russian war against Ukraine in February 2022, energy and food in particular became much more expensive and fuelled overall inflation in Germany.
In autumn 2022, the inflation rate temporarily reached its highest level since Germany’s reunification in March 1991, soaring to 8.8%.
Consumer prices rose by 0.4% in February compared to the previous month.
