Cheaper energy etc.

German inflation fell to 2.5 percent in February

Inflation in Germany fell to 2.5 percent in February. This was partly due to food prices, which hardly rose at all (symbolic image).(Bild: APA/dpa/Sven Hoppe)

Germany's inflation stood at 2.5 percent in February, its lowest level since June 2021. Cheaper energy and barely rising food prices contributed to this. "The price situation for energy continues to ease," said Ruth Brand, President of the Federal Statistical Office.

Energy cost an average of 2.4% less in February 2023 than in February a year ago. In January, prices had fallen even more sharply (by 2.8% overall). Food prices also rose less than overall prices for the first time since November 2021. They only cost 0.9% more than in February of the previous year and 0.4% more than in January 2023. "The rise in food prices has slowed significantly and is now below overall inflation for the first time in more than two years," said Brand.

Services, on the other hand, more expensive
In contrast, services became more expensive compared to the previous year, namely by 3.4 percent. Core inflation, which excludes the often fluctuating energy and food prices, remained at 3.4 percent. 

The European Central Bank (ECB) is aiming for an inflation rate of two percent as the ideal value for the eurozone. However, the German rate calculated according to these standards was higher at 2.7 percent in February. By way of comparison, inflation in Austria fell to 4.3 percent in February in a year-on-year comparison.