Inflation in Germany Accelerated at the Beginning of 2023.

Inflation in Germany accelerated in January, reported the statistical office on Wednesday, following changes in the calculation method, highlighting the continuous strong rise in energy and food prices, as well as frequent increases in services.

Consumer prices rose by 8.7 percent in January compared to the same month last year, reported Destatis, confirming the estimate published two weeks ago.

In December, they rose by 8.1 percent, and in November by 8.8 percent, according to revised data after the base year for calculations was changed from 2015 to 2020.

Compared to December, prices in January were one percent higher.

The Harmonized Index of Consumer Prices (HICP), which is used for easier comparison with other European Union countries, showed a price increase in January of 9.2 percent compared to the same month last year. On a monthly basis, they rose by 0.5 percent.

Destatis reported on the revision of data due to the change in methodology in its preliminary estimate of inflation in January.

The results show that the price increase has accelerated again at the beginning of the year, states Destatis.

– After weakening at the end of (last) year, the inflation rate is again at a high level – concluded the president of the statistical office Ruth Brand.

– We have noticed price increases for numerous products, and increasingly for services – added Brand.

Households faced significantly higher costs for both energy and food in January.

Energy prices were 23.1 percent higher than in January last year, despite government aid measures. Households paid as much as 36.5 percent more for energy than a year ago, the report states.

Food was 20.2 percent more expensive year-on-year, and price increases were recorded in all product categories, the report shows.

– The rate of food price growth is thus again more than double the overall inflation rate – announced the statistical office.

If energy prices are excluded, the inflation rate in January was 7.2 percent. If food prices are also excluded, it reached 5.6 percent, the report from Destatis shows.

Goods became 12.7 percent more expensive in January, while services rose by 4.5 percent, according to calculations by the statistical office.