April 16, 2024

Consumer price index, March 2024
+2.2% on the same month a year earlier (provisional result confirmed)
+0.4% on the previous month (provisional result confirmed)

Harmonised index of consumer prices, March 2024
+2.3% on the same month a year earlier (provisional result confirmed)
+0.6% 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 +2.2% in March 2024. The inflation rate was +2.5% in February 2024, and +2.9% in January 2024. The inflation rate in March 2024 was therefore at its lowest level since May 2021 (also +2.2%). Before that, an even lower value was observed in April 2021 (+2.0%). “The rate of inflation has decreased further,” says Ruth Brand, President of the Federal Statistical Office. She adds: “The price situation for energy and food had a dampening effect on inflation for the second consecutive month. In March 2024, consumers had to pay less for food than a year earlier for the first time since February 2015.” The Federal Statistical Office (Destatis) also reports that consumer prices in March 2024 rose by 0.4% on February 2024.

Energy product prices fell by 2.7% compared with March 2023

Energy prices in March 2024 were 2.7% lower than in the same month a year earlier despite the discontinuation of the brake on energy prices as of January 2024 and the introduction of a higher carbon price from January 2024, which affects the price of fossil fuels such as motor fuels, heating oil and natural gas. A year-on-year decrease in energy prices has therefore been consistently recorded since the start of the year (January 2024: -2.8%; February 2024: -2.4%). This development had a downward effect on the rate of inflation.

From March 2023 to March 2024, prices of household energy fell by 4.6%. Compared with the same month of the preceding year, consumers mainly benefitted from lower prices for firewood, wood pellets and other solid fuels (-10.8%), but also for natural gas (-9.2%) and electricity (-8.1%). By contrast, the prices of some energy products were higher than a year earlier, in particular district heating (+20.6%). There was also a slight increase in the price of mineral oil products (+0.3%, of which motor fuels: +0.3%; heating oil: +0.4%).

Food prices down 0.7% compared with March 2023

In March 2024, food prices were down 0.7% year on year. This means that food prices were lower compared to the same period of the previous year for the first time since February 2015 (-0.2%). The increase in food prices has slowed since April 2023 and, at +0.9%, was already below the overall rate of inflation in February 2024. In particular, the prices of fresh vegetables (-20.1%) declined in the period from March 2023 to March 2024. Consumers also had to pay markedly less than a year earlier for dairy products (-5.5%). Fish, fish products and seafood were more expensive (+0.9%) compared with the previous year. In addition, the prices of a variety of foodstuffs in March 2024 were above the overall rate of inflation – in some cases by a considerable margin – including the price of sugar, jam, honey and other confectionery (+8.4%), the price of fruit (+4.2%) and the price of bread and cereals (+3.0%). Year on year, a marked decline was recorded in the price of sunflower oil, rapeseed oil and the like (-21.7%), while olive oil prices experienced a sharp increase (+54.1%).

Below-average rise in goods prices of 1.0% on March 2023

Goods prices (total) increased by 1.0% in the period from March 2023 to March 2024 and therefore were lower than overall inflation. The prices of non-durable consumer goods and durable consumer goods rose by 0.5% and 1.8%, respectively. Some goods registered above-average price increases, however, for example non-alcoholic beverages (+6.5%), alcoholic beverages and tobacco products (+5.2%) and passenger cars (+4.1%). By contrast, lower prices were observed, for example, for mobile phones (-5.3%) and information processing equipment (-5.5%).

Service prices up 3.7% year on year

The prices of services (total) were up 3.7% in March 2024 on the same month of the previous year. A major factor contributing to the development of service prices was the 2.1% increase in net rents exclusive of heating expenses. However, the prices of a number of other services increased above average, among them were insurance services (+11.0%), services of social facilities (+7.8%) and catering services in restaurants, cafés and the like (+6.9%). By contrast, the Germany ticket available since May 2023 continued to have a dampening effect on the increase in service prices also in March. Consumers had to pay less in particular for the combined tickets for rail, bus and the like (-23.3%) compared with the same month a year earlier.

Prices up month on month, but down for energy and food

Compared with February 2024, the consumer price index rose by 0.4% in March 2024. Seasonal month-on-month price increases were observed mainly for air tickets (+21.2%), package holidays (+6.8%) and clothing (+3.6%). By contrast, energy prices (total) fell by 0.3% compared with the previous month, a particular price drop was recorded for heating oil (-4.0%). The prices of natural gas (-1.1%) and electricity (-0.9%) decreased as well. Consumers also had to pay somewhat less for food in general (-0.3%) in March 2024 than in February 2024, especially for fresh vegetables (-3.5%) and fruit (-1.0%).

Source: DESTATIS
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