Inflation in Germany slowed down to 3.2% y/y in November

In November 2023, inflation in Germany slowed to 3.2% compared to November 2022. In October, the figure rose by 3.8% y/y. Thus, inflation in the country reached its lowest level since June 2021 (+2.4%). This is evidenced by data from the German Federal Statistical Office Destatis.

Compared to October, the inflation rate in Germany decreased by 0.4%.

Energy prices in November decreased by 4.5% compared to November 2022, restraining inflation. In October, this figure increased by 3.2% y/y. Prior to October, energy prices in Germany had been declining year-on-year since January 2021.

«The base effect came into play here due to the very high level of energy prices in the previous year,» Destatis notes.

Food prices for the month slowed down to 5.5% y/y, compared to 6.1% y/y/ in October.

Core inflation in Germany at the end of November was +3.8%, decelerating from 4.3% in October.

As GMK Center reported earlier, industrial production in Germany in September 2023, taking into account seasonal and calendar factors, it decreased by 1.4% compared to the previous month. Compared to August, taking into account calendar factors, production in German industry decreased by 3.7%. In the monthly dynamics, the indicator decreased for the fourth month in a row.