Germany Inflation Rate

The annual inflation rate in Germany was at 8.6 percent in December of 2022, the lowest in four months and in line with preliminary estimates, but well above the European Central Bank’s target of about 2 percent. Goods inflation slowed sharply (13.9 percent vs 17.1 percent in November) due to a softer rise in costs of both energy (34.7 percent vs 38.7 percent) and food (20.7 percent vs 21.1 percent). Meanwhile, services inflation accelerated (3.9 percent vs 3.6 percent), and rent prices advanced 1.9%, the same pace as in the previous month. On a monthly basis, consumer prices declined 0.8 percent in December, following a 0.5 percent fall in November. The EU-CPI harmonized rose 9.6 percent on the year and dropped 1.2 percent month-on-month. Considering full 2022, inflation was 7.9%