Despite a renewed slowdown, people in Germany are clearly feeling the effects of the high inflation in everyday life. Food and energy continue to be particularly expensive.
Inflation in Germany appears to have peaked. Inflation weakened in April for the second month in a row – albeit at a still high level. Consumer prices rose by 7.2 percent compared to the same month last year. The Federal Statistical Office confirmed an initial estimate. In March, the inflation rate of 7.4 percent fell below the 8 percent mark for the first time since August 2022.
Food drives inflation
Inflation is a challenge for consumers: it is eroding their purchasing power. People can afford less for one euro. According to economists, consumers cannot hope for a thorough easing of prices for the time being.
“Food remains the strongest price driver among the goods and services in the shopping basket in April,” explained the President of the Federal Statistical Office, Ruth Brand. However, for the first time this year, the upward trend in prices weakened somewhat. Food prices increased by 17.2 percent within a year. In January, prices were still 20.2 percent above the level of the same month last year, in February they were 21.8 percent and in March 22.3 percent.
Energy prices continue to rise
The current development gives hope “that the peak of food inflation is now clearly behind us,” said Sebastian Dullien, scientific director of the Institute for Macroeconomics and Business Cycle Research (IMK) of the Hans Böckler Foundation.
Energy price increases picked up again in April. Energy prices rose by 6.8 percent year-on-year after rising 3.5 percent in March.