Inflation in Germany slowed towards the end of 2022, but reached a record high for the year as a whole. The increase in energy and food prices raised the inflation rate to 7.9% on average for the year. The Federal Statistical Office confirmed an initial estimate on Tuesday.
It was the highest level since the founding of the Federal Republic. However, the calculation method has changed over time. In 2021, consumer prices increased by 3.1% year-on-year.
“The historically high annual inflation rate was mainly driven by the extreme increases in energy and food prices since the beginning of the war in Ukraine,” explained Ruth Brand, chairman of the Authority.
In December, inflation decelerated from a high level, in particular because the State took on the costs of advances from gas and district heating customers on an ad hoc basis. Consumer prices rose 8.6 percent compared with the same month last year. Here, too, statisticians confirmed an initial estimate. In November, the rate was 10%. The record level of 10.4% was reached in October.
Compared to November, the consumer price index fell by 0.8% in December. According to economists, inflation should initially accelerate again after the end of one-off relief. As of March, the brake on gas and electricity prices may once again dampen inflation. Economists don’t expect a significant overall easing in consumer prices in 2023.