Inflation in Germany fell to its lowest level since Russia’s war with Ukraine

Inflation in Germany fell to its lowest level since Russia’s war with Ukraine

The inflation in Germany slowed in September to 4.5% in a year, at its lowest level since the start of the war in Ukraine in February 2022, according to figures published on Thursday by the statistics institute.

The indicator fell 1.6 percentage points compared to August, Destatis indicated. This decline is mainly due to an improvement in the energy prices and at the end of the impact of a reduction in prices of transport applied last year.

The fall is greater than the forecasts of experts cited by the financial analysis platform Factset, who predicted an inflation of 4.7%.

According to Destatis, this drop is due to a “base effect” that ended at the end of September.

Germany: why inflation fell

Between June and August, the inflation was affected by the comparison with the transport price level in the summer of 2022, very low thanks to a government aid plan.

During that period, Berlin established a 9 euro ($9.5) per month bill that allowed access to all public transportation in the country, as well as a reduction in fuel costs.

The inflation slowdown It is also due to an improvement in energy prices, which only increased 1.0% in September, after increasing 8.3% in August and 5.7% in July.

The food inflation It also slows down, but remains at a high level, 7.5%, compared to 9.0% in August and 11.0% in July.

Source: Ambito

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