Inflation in Germany was 2.5 percent in February, at the lowest level since June 2021. Cheaper energy and barely rising food prices contributed to this. “The price situation for energy continues to soften,” said Federal Statistical Office President Ruth Brand.
Energy cost on average 2.4 percent less in February 2023 than in February a year ago. In January, prices had fallen even slightly further (2.8 percent in total). Food prices also rose more slowly than prices in general for the first time since November 2021. They cost only 0.9 percent more than in February of the previous year or 0.4 percent more than in January 2023. “The increase in food prices has slowed significantly and is now below headline inflation for the first time in more than two years ” said Brand. .
However, services are more expensive
Services, on the other hand, became more expensive compared to the previous year, by 3.4 percent. So-called core inflation, which ignores the often fluctuating energy and food prices, remained at 3.4 percent.
The European Central Bank (ECB) targets an inflation rate of two percent as the ideal value for the eurozone. However, the German rate calculated according to these standards was higher in February at 2.7 percent. By comparison, inflation in Austria fell to 4.3 percent on an annual basis in February.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
