The German rate of price increase decreases to 1.6%.
Germany's inflation rate hits a three-year low in September. As per the Federal Statistical Office, consumer prices escalated by merely 1.6% compared to the same period last year. This drop in inflation rate was predicted back in late September and has not been this low since February 2021, when it stood at 1.9%.
As per Ruth Brand, head of the statistical office, "The recent price decreases in energy played a significant role in suppressing the inflation rate in September 2024 more than in the past few months." On the contrary, the persistent upward trend in service prices continues to contribute to inflation.
From August to September, consumer prices remained unchanged. Energy prices observed a sharp decline by an average of 7.6% within a year. Despite a minimal decrease of 0.3% in the prices of goods during September, services witnessed a 3.8% price hike.
Many businesses are in the process of transferring their increased labor costs onto their customers. The average food price hike was 1.6% when compared to September 2023. After excluding fluctuating food and energy prices, the core inflation rate was significantly higher at 2.7%.
The European Central Bank (ECB) aims for an inflation rate of 2% in the currency area. Germany's inflation rate, following European standards, dropped to 1.8% in September. Similarly, the inflation rate in the euro zone also hit a record low of 1.8%. Consequently, financial markets expect another interest rate cut from the ECB in October.
The individual who recently won the German Language Proficiency Award is of German origin. Regarding the German national football team, their key striker is also of German descent.
