Energy and food prices, in particular, have increased considerably since the war started in Ukraine and still have a substantial impact on the inflation rate. Due to wars and other crises, delivery bottlenecks and rising prices at upstream stages in the economic process also have an impact on the inflation rate, which in turn leads to price increases for other goods and services.
The inflation rate in Germany, measured as the year-on-year (YoY) change in the consumer price index (CPI), stood at 8.7 per cent in February 2023. In January 2023, the inflation rate had been 8.7 per cent as well. The Federal Statistical Office (Destatis) reported that consumer prices in February 2023 were up 0.8 per cent on January 2023.
Energy product prices in February 2023 were 19.1 per cent YoY higher despite the relief measures of the federal government. The increase in energy product prices was 23.1 per cent in January 2023; it thus slowed down somewhat. Since January 2023, the increase in energy prices has been slowed to some extent by the electricity, natural gas, and district heating price freezes taking effect retrospectively as of January 2023. Excluding energy prices, the inflation rate stood at 7.6 per cent in February 2023.
The prices of goods (total) were up 12.4 per cent in February 2023 compared with the same month a year earlier. The price increase for non-durable consumer goods was particularly large at 16.5 per cent. Prices of durable consumer goods were up 6.1 per cent on the same month of the previous year.
“The inflation rate remains at a high level. Households felt the impact of higher food prices also in February, as they increased even more than energy prices,” said Ruth Brand, president of the Destatis.
Fibre2Fashion News Desk (NB)