German inflation falls to 2,2 percent, lowest rate since May 2021

The latest figures from the German Federal Statistical Office (Destatis) have confirmed that the inflation rate fell to 2,2 percent in March, with food prices seeing the biggest year-on-year decline since 2015.

Inflation falls to 2,2 percent in March 2024

Down from 2,9 percent in January and 2,5 percent in February, the inflation rate in Germany fell to 2,2 percent in March 2024, Destatis has announced.

This means that, after surging inflation catalysed by the Russian invasion of Ukraine, the German inflation rate has fallen to its lowest level since May 2021, when it also sat at 2,2 percent.

Germany’s inflation rate is calculated based on the consumer price index (CPI), which measures the average price change of all goods and services on sale in the federal republic - everything from bread and rent to a haircut - in comparison to the same month of the previous year.

The core inflation rate calculation excludes the changing cost of food, energy, tobacco and alcohol since these goods are much more vulnerable to cost fluctuations.

Year-on-year food prices cheaper for the first time since 2015

Shoppers in German supermarkets can expect to feel the price pinch a little less on their weekly and daily visits. “In March 2024, consumers had to pay less for food than a year earlier for the first time since February 2015,” said Ruth Brand, President of Destatis.

“The price situation for energy and food had a dampening effect on inflation for the second consecutive month," Brand explained, with energy costs 2,7 percent lower in March 2024 than during the same month the previous year.

Areas that saw price increases were services, holidays and clothing. Compared to March 2023, the cost of restaurants and cafes rose by 6,9 percent, pushing customers in the direction of Germany’s Döner and Asia Imbisse. 

Package holidays saw a similar increase, rising by 6,8 percent compared to February 2024, while flying to and from German airports cost passengers 21,2 percent more than a year previous, and clothing cost 3,6 percent more.

Thumb image credit: 1take1shot / Shutterstock.com