The decline in inflation in Germany stalled in April. It remains at 2.2 percent. Economists expect rates to rise again in the coming months.
Life in Germany became more expensive in April to the same extent as in March. Consumption prices were again 2.2 percent higher than in the same month last year, as calculated by the Federal Statistical Office. This means that the decline in inflation that had been recorded since the beginning of the year came to a halt.
Economists expect rates to rise again in the next few months. Many companies want to increase prices, for example in restaurants or drugstores. From March to April 2024, consumer prices in this country increased by 0.5 percent. Here too, the Wiesbaden statisticians confirmed preliminary information from the end of April on Tuesday.
Energy prices could increase in the next few months. Since April 1st, the regular VAT rate of 19 percent has applied again to natural gas and district heating. The reduced rate of 7 percent was due from October 1, 2022 to March 31, 2024. Politicians wanted to provide relief after the Russian war against Ukraine had made energy drastically more expensive.
According to the Federal Office, in April household energy prices were no longer as cheap, at an average of 1.2 percent, as in March when they fell by 2.7 percent. District heating in particular rose significantly in price in April, increasing by 27.4 percent year-on-year.
According to the Federal Office, consumers had to pay 0.5 percent more for food this April than a year earlier; in March, food prices had fallen by 0.7 percent. Higher inflation rates weaken the purchasing power of consumers. This slows down private consumption, which is an important pillar of the German economy.