Germany’s CPI closed 2023 with an average increase of 5.9%, after rebounding to 3.7% in December

In 2023, Germany’s Consumer Price Index (CPI) ended with an average increase of 5.9%, marking a rise to 3.7% in December. The overall cost of living in Europe’s largest economy moderated from 6.9% in 2022, as reported by the Federal Statistical Office (Destatis). This moderation reflects a lesser increase in energy costs, averaging a 5.3% rise compared to 29.7% in 2022, while food prices averaged a 12.4% increase, slightly down from 13.4% in 2022.

Excluding the volatile energy and food prices, Germany’s core inflation rate for 2023 was 5.1%, up from 3.8% the previous year. “The inflation rate for 2023 was below the record high of 2022. However, at nearly 6%, it remains at a high level. Food prices, in particular, saw notably high average increases in 2023,” stated Ruth Brand, President of the Federal Statistical Office.

Brand noted that the price increases in 2023 were influenced by the war and multiple crises, shaping price developments at all stages of the economic process. She also mentioned that special effects, partly due to relief measures implemented, were apparent in the monthly inflation rates throughout the year.

In December, Germany’s annual inflation rate climbed to 3.7% from 3.2% the previous month. This was due to a 4.1% increase in energy costs, which had decreased by 4.5% in November, while the rise in food prices slowed to 4.6