Inflation in Germany slowed to 4.5% y/y in September

In August and July, the inflation rate exceeded 6% – 6.1% and 6.2%, respectively

In September 2023, the inflation rate in Germany slowed down to 4.5% y/y compared to 6.1% y/y in August and 6.2% y/y in July This is stated in a press release on the website of the Statistical Office of Germany Destatis.

Compared to August, inflation in Germany increased by 0.3% in September.

«The level of inflation has fallen to the lowest level since the beginning of the war in Ukraine. But it still remains high,» comments Ruth Brand, president of Destatis.

Energy prices in September were 1% higher compared to September 2022. At the same time, energy carriers rose in price by 8.3% y/y in August. The main reason for the significantly lower price growth in September compared to August is the sharp rise in prices in September 2022.

The inflation rate excluding energy prices increased by 5% y/y in September. However, inflation excluding food and energy (core) fell below 5% to +4.6%. This shows that food prices have a significant impact on the overall inflation rate.

As GMK Center reported earlier, according to Eurostat, inflation in the Eurozone in September 2023 increased by 4.3% y/y, slowing down from 5.2% in August. Thus, inflation in Europe updated the minimum since October 2021.

Eurozone GDP in April-June 2023 increased by 0.3% compared to January-March 2023. Compared to the second quarter of 2022, the economy of the Eurozone grew by 0.6%.

The economy of the European Union in April-June 2023 did not change compared to the first quarter of 2023. In annual terms, EU GDP grew by 0.5% in the second quarter.