Inflation in Germany rose again in July, with consumer prices 2.3% higher than in the same month a year ago, compared to an annual 2.2% rise seen in June, the Federal Statistical Office announced on Tuesday based on preliminary figures.
The June figure had represented a downward trend from May’s 2.4% annual increase, but July’s figure shows that has ended.
Economists had recently expected a trend towards stable prices in the summer. A survey conducted by the ifo Institute about companies’ price plans showed price increases are less frequently planned in consumer-related areas.
Still the extremely high inflation rates of the past two years are now history.
Leading economic research institutes expect inflation in Germany to slow down significantly to an average of 2.3% for this year, down from 5.9% in 2023.
However, the decline has been sluggish of late. Economists pointed to higher wages, which can lead to price increases.
