While recent statistics indicate that Germany’s inflation has been dropping, consumers are nonetheless seeing price rises at the register. Inflation in July was 6.2%, according to official figures from the Federal Office of Statistics (Destatis). This maintains the year’s declining trend in inflation and shows a little decrease from the June figure of 6.4%. The cost of food is still considerably greater than it was a year ago, though, which is putting pressure on consumer budgets and driving up the cost of living faster than typical.

Food Costs Drive Germany’s Inflation Rise

1. Food prices rose by an average of 11% between July 2022 and July 2023, which is lower than the 13.7% increase in June.

• • Sugar, jam, honey, and confectionery: +18.9%
  • Vegetables: +15.7%
  • Fish, fish products, and seafood: +14.1%
  • Bread and cereal items: +16.6%

3. Due to better supply networks following the Ukraine war, edible fats and oils are now 12.9% less expensive than they were a year ago.

4. Destatis President Ruth Brand observed that, despite a decline, inflation was still significant and was mostly driven by food costs.

Increase in energy costs

• Record-high inflation is impacting German households’ purchasing power.
• The most significant living expense increase since Germany’s unification was 8.8% in the autumn.
• The yearly inflation rate reached 7.9%.
• Energy costs, notably fuel and oil, are a major driver of price increases.
• Supply disruptions due to the pandemic and Russia’s Ukraine invasion contributed to energy cost hikes.
• Energy commodity costs rose by 5.7% in July compared to the previous year, with natural gas up by 8.5% and electricity rates by 17.6%.
• Petrol and diesel prices were 4.9% lower than a year ago.
• The €9 ticket minimized summer 2022 inflation, but this year’s ticket price is higher at €49.