October 16, 2023

Consumer price index, September 2023
+4.5% on the same month a year earlier (provisional result confirmed)
+0.3% on the previous month (provisional result confirmed)

Harmonised index of consumer prices, September 2023
+4.3% on the same month a year earlier (provisional result confirmed)
+0.2% on the previous month (provisional result confirmed)

The inflation rate in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at +4.5% in September 2023. In both August and July 2023, the inflation rate stood at over 6% (+6.1% and +6.2%, respectively). “The rate of inflation has dropped to the lowest level since the start of the war in Ukraine. It remains high, however”, says Ruth Brand, President of the Federal Statistical Office. She adds: “Consumers are still clearly feeling the higher food prices”. The Federal Statistical Office (Destatis) also reports that consumer prices in September 2023 rose by 0.3% on August 2023.

Below-average increase in the price of energy products (+1.0%)

Energy product prices in September 2023 were 1.0% higher than in the same month a year earlier, following an increase of +8.3% in August 2023. The much lower price increase is primarily due to the rise in prices in the previous year (base effect), even though different price developments were observed: in September 2023, electricity was still markedly more expensive (+11.1%) than a year earlier. By contrast, only marginal price increases were reported for district heating (+0.3%). In the case of some energy products, the prices in September 2023 were even lower than a year before (e.g. natural gas: -5.3%; motor fuels: -6.0%). A particular decline was recorded in the price of heating oil (-26.0%).

Food prices remain driver of inflation: +7.5% from September 2022

Food prices were up 7.5% in September 2023 compared with the same month a year earlier. While the surge in food prices therefore continued to slow (August 2023: +9.0%, July 2023: +11.0%), price increases in many food groups still remained markedly higher than overall inflation. In particular, consumers had to pay much more for sugar, jam, honey and other confectionery (+15.3%) and for bread and cereals (+12.0%). Fish, fish products and seafood were also significantly more expensive (+9.6%), as were vegetables (+8.4%) and fruit (+7.5%). Edible fats and oils, by contrast, cost 14.2% less than a year earlier, which was mainly due to the sharp drop in the prices of butter (-29.0%) and sunflower oil, rapeseed oil and the like (-16.6%).

Inflation rate excluding food and energy at +4.6%

Excluding energy prices, the inflation rate stood at +5.0% in September 2023. When food and energy prices are excluded, the inflation rate dropped below the 5% mark to a value of +4.6%, however, which demonstrates the significant role food prices play in overall inflation. This rate, which is often referred to as “core inflation”, simultaneously demonstrates that inflation also remains high in other product groups. At +5.5%, the consumer price index excluding food and energy was almost one percentage point higher in August 2023, however, as the price increase in September 2023 was weaker, particularly in the case of services.

Service prices up 4.0% year on year, base effect of 9-euro ticket ceases to apply in September 2023

The prices of services (total) were up 4.0% in September 2023 on the same month of the previous year. In August 2023, the price increase was +5.1%. The discontinuation of the 9-euro ticket, which was available from June through August 2022, had a particular base effect here. The Germany ticket, which has been available since May 2023, now has a downward effect on the development of prices in September 2023 without any opposite effects. Short-distance rail tickets were 0.3% more expensive year on year (August 2023: +64.6%). The impact was even more pronounced in the case of combined tickets for rail, bus and the like, as they cost 22.6% less in September 2023 than in the same month of the previous year (August 2023: +113.0%). Net rents exclusive of heating expenses also had a dampening effect (+2.1%) and therefore were a significant contributor to the below-average increase in service prices. However, the prices of a number of other services increased considerably, for instance maintenance and repair of dwellings (+12.9%), services of social facilities (+11.1%) and package holidays (+10.3%).

Goods prices up 5.0% on September 2022

The prices of goods (total) were up by 5.0% in September 2023 on the same month of the previous year. Slightly larger price increases were observed for non-durable consumer goods (+5.5%, including alcoholic beverages and tobacco: +8.8%; food and non-alcoholic beverages: +7.7%). The prices of durable consumer goods rose by 4.1% compared with September 2022.

Prices of mineral oil products up 2.5% month on month

Compared with August 2023, the consumer price index rose by 0.3% in September 2023. Energy prices as a whole increased by 0.8% from August 2023 to September 2023. Price increases were recorded especially for mineral oil products (+2.5%, of which heating oil: +6.0% and motor fuels: +2.2%). Natural gas was less expensive (-1.2%). Food prices (total) rose slightly compared with the previous month (+0.4%, including fruit: +1.4%). There were also seasonal price fluctuations in September 2023: for example, clothing prices increased (+5.4%), whereas the price of package holidays decreased (-6.5%).

Source: DESTATIS
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