Germany's inflation confirmed at 3.7% in December

By Tuba Ongun

Germany's annual consumer inflation was confirmed at 3.7% in December, according to official data released on Tuesday.

The figure was down from November's over 2-year low of 3.2% with a jump in energy prices, the Destatis data showed.

Energy product prices in December surged 4.1% year-on-year after a 4.5% decrease in November due to a base with so-called "December immediate assistance."

The cost of food increased 4.5% from the prior year in December 2023, slowing further from November's 5.5% hike.

Core inflation, excluding food and energy, eased to 3.5%, the lowest since July 2022.

On a monthly basis, consumer prices in December edged up 0.1%, shifting from a 0.4% decline in November.

For the whole year of 2023, the average consumer inflation rate came in at 5.9%, down from record high of 6.9% in 2023

Despite the fall from the previous year at almost 6%, "it is still at a high level, however. Food prices registered particularly sharp increases on an annual average basis in 2023," said Ruth Brand, the statistics agency head.

Food prices increased 12.4% from a year ago in 2023, Destatis data showed.

Energy inflation cooled to 5.3% in 2023, following a steep hike of 29.7% in 2022 which stemmed from the Russia-Ukraine war and multiple crises.

The core inflation in 2023 came in at 5.1%, increased on 3.8% in 2022.