Prices in Germany have slowed their growth for the third consecutive month, and experts believe that the peak of inflation has passed, reported the Federal Statistical Office.
– More and more indicators suggest that the peak of inflation is behind us – said an economist from Hauck Aufhäuser Lampe bank.
He stated that the decline in producer prices could soon reflect in a decrease in retail prices. The Federal Statistical Office announced on Friday that producer prices in December fell by 0.4 percent compared to November, marking the third consecutive month of price declines.
In December, producer prices were 21.6 percent higher compared to the same period last year. In August, prices were 45.8 percent higher compared to the same period in 2021. Since September, the pace of price increases has begun to slow.
Throughout 2022, prices rose by 32.9 percent, which is a record value since the introduction of statistics in 1949.
The main reason for the price increase is the rise in energy prices following the Russian invasion of Ukraine. Energy prices in December 2022 were 41.9 percent higher than in the same period in 2021. Gas and oil prices began to fall towards the end of the year, which also affected the reduction in the rate of price increases. Gas prices started to decline after the opening of the first German terminals for liquefied gas, but also due to a milder winter and reduced consumption.
