Germany Inflation Rate1950-2021 Data | 2022-2023 Forecast | Calendar | Historical

The consumer price inflation rate in Germany was confirmed at 3.9% year-on-year in August 2021, the highest level since December 1993, due to further recovery in domestic demand and base effects from low prices in 2020, in particular the temporary lowering of VAT rates and the decline in the price of petroleum products. The introduction of CO2 pricing as of January 2021 and crisis-related effects, such as marked price increases at upstream stages in the economic process, are also weighing on the CPI. Goods prices rose by 5.6% (vs 5.4% in July), boosted by energy (12.6% vs 11.6%) and food cost (4.6% vs 4.3%). In addition, services inflation accelerated to 2.5% from 2.2%, on the back of net rents exclusive of heating expenses (1.4%), services of social facilities (5%), maintenance and repair of vehicles (5.1%) and for catering services in restaurants, cafes and the like (3.5%). On a monthly basis, consumer prices were unchanged.

Germany's consumer price inflation likely accelerated to 3.9 percent year-on-year in August 2021, the highest since December 1993 and in line with market expectations, a preliminary estimate showed. Price increases have been supported by a steady recovery in domestic demand and base effects from low prices in 2020, in particular the temporary lowering of VAT rates and the decline in the price of petroleum products. Services inflation accelerated to 2.5 percent from 2.2 percent in July; while goods prices rose 5.6 percent, compared with 5.4 percent in the previous month, mainly boosted by energy (12.6 percent vs 11.6 percent) and food (4.6 percent vs 4.3 percent). On a monthly basis, consumer prices are expected to remain unchanged in August, following a 0.9 percent jump in July.

The consumer price inflation rate in Germany was confirmed at 3.8 percent year-on-year in July 2021, the highest level since December 1993, reflecting the re-opening of Europe's largest economy, the low base effect caused by the coronavirus crsis and the temporary reduction of VAT rates in July-December 2020. Goods prices rose by 5.4 percent (vs 3.1 percent in June), boosted by energy (11.6 percent vs 9.4 percent) and food cost (4.3 percent vs 1.2 percent). Additional upward pressure came from clothing (6.2 percent) and vehicles (5.2 percent) as well as furniture and lighting equipment (4.0 percent). In addition, services inflation accelerated to 2.2 percent from 1.6 percent, on the back of net rents exclusive of heating expenses (1.4 percent), services of social facilities (5.1 percent), maintenance and repair of vehicles (4.9 percent) and for catering services in restaurants, cafes and the like (3.6 percent). On a monthly basis, consumer prices jumped 0.9 percent in July.

Germany's consumer price inflation rate is expected to pick up to 3.8 percent year-on-year in July of 2021, the highest since December 1993 and above market expectations of 3.3 percent, a preliminary estimate showed. The spike in inflation is mainly attributed to the value added tax effect, after the government cut the tax temporarily in the second half of 2020 as part of pandemic-related economic support. German central bank chief Jens Weidmann last week voiced concern that the ECB might keep interest rates low for too long, noting that his experts saw German inflation approaching 5% later this year. Goods inflation advanced to 5.4 percent in July from 3.1 percent, amid faster increases in both energy cost (11.6 percent vs 9.4 percent) and food prices (4.3 percent vs 1.2 percent). Also, services inflation is likely to accelerate to 2.2 percent from 1.6 percent. On a monthly basis, consumer prices are expected to advance 0.9 percent, also below forecasts of a 0.5 percent gain.