According to the final report from the Federal Statistical Office (Destatis), in February, consumer prices rose by 2.3% per year, as expected, after a similar increase in January. Destatis said that the rise in food prices accelerated in February. In addition, above-average increases in service prices, in particular, continued to drive up inflation. By contrast, the development of energy prices had a downward effect on inflation.
On a monthly basis, consumer prices rose by 0.4%, as expected, after declining by 0.2% in January.
The data also showed that in February, energy prices fell by 1.6% per year after a similar decline in January. The prices of motor fuels (-0.7%) and household energy (-2.2%) were down year on year, with consumers benefiting from lower prices for electricity (-3.0%), firewood, wood pellets and other solid fuels (-5.0%) and heating oil (-6.9%). By contrast, natural gas (+2.0%) and district heating (+9.7%) were more expensive than a year earlier. Food prices were up 2.4% year on year, after +0.8% in January. The last time a higher increase in food prices was recorded was in January 2024 (+3.8% per annum).
Meanwhile, excluding energy prices, the inflation rate stood at +2.7% in February. The inflation rate excluding food and energy, often referred to as core inflation, was also +2.7% in February.
Destatis said that in February, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - rose by 0.5% on a monthly basis and by 2.6% per year. In January, HICP fell by 0.2% m/m and rose by 2.8% per annum.