July 18, 2023

Consumer price index, June 2023
+6.4% on the same month a year earlier (provisional result confirmed)
+0.3% on the previous month (provisional result confirmed)

Harmonised index of consumer prices, June 2023
+6.8% on the same month a year earlier (provisional result confirmed)
+0.4% 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 +6.4% in June 2023. In May 2023, the inflation rate was +6.1%. “The rate of inflation therefore increased slightly again after slowing for three months in a row,” says Ruth Brand, President of the Federal Statistical Office. She adds: “Food remained the biggest driver of inflation. There also is a base effect due to the Federal Government’s relief measures of 2022 – the 9-euro ticket and the fuel discount, – which pushes up the current rate of inflation.“ The Federal Statistical Office (Destatis) also reports that consumer prices in June 2023 rose by 0.3% on May 2023.

Prices of energy products up 3.0% year on year

Energy product prices in June 2023 were 3.0% higher than in the same month a year earlier, following a 2.6% increase in May 2023. The fact that the increase in energy prices has been below average since March 2023 is mainly due to a base effect from the previous year. There had been large price increases as a result of the Russian attack on Ukraine. The current energy price development is also influenced by other factors, for example the downward trend of prices at upstream stages in the economic process (only in german). Measures of the Federal Government’s third relief package such as the brakes on electricity, natural gas and district heating prices also influenced the development of energy prices.

From June 2022 to June 2023, price increases were particularly pronounced for solid fuels (+26.6%) and natural gas (+20.8%). Above-average price rises were observed also for electricity (+10.5%) and district heating (+9.3%). By contrast, the prices of mineral oil products fell considerably by 12.8%, especially for heating oil (-36.5%). Motor fuels also cost less than a year earlier (-10.4%) despite the previous year’s fuel discount.

Food prices remain biggest driver of inflation: +13.7% from June 2022

Food prices in June 2023 were up 13.7% year on year after a 14.9% increase in May 2023. Food therefore remained the biggest driver of inflation among all product groups. Prices continued to be higher than a year earlier in nearly all food groups. Consumers had to pay markedly more for dairy products (+22.3%) and for sugar, jam, honey and other confectionery (+19.4%). Substantial year-on-year price increases were also recorded for vegetables (+18.8%), fish, fish products and seafood (+18.5%), bread and cereals (+18.3%). By contrast, edible fats and oils cost 12.1% less than a year earlier.

Inflation rate excluding energy and food at +5.8%

Excluding energy prices, the inflation rate stood at +6.7% in June 2023. When energy and food prices are excluded, the inflation rate was lower (+5.8%), which demonstrates the enormous impact food prices currently have on overall inflation. This rate, which is often referred to as “core inflation”, clearly shows at the same time that inflation is high also in other product groups. In May 2023, the consumer price index excluding energy and food stood at +5.4%, the core inflation rate therefore accelerated again in June 2023. In both April and March 2023, the rate also stood at +5.8%.

Goods prices up 7.3% on June 2022

The prices of goods (total) rose by 7.3% in June 2023 on the same month of the previous year. The price increase was particularly pronounced for non-durable consumer goods (+8.8%), which was mostly due to the price rise in the product group of food and non-alcoholic beverages (+13.4%). The prices of durable consumer goods were 5.2% higher compared with June 2022.

Service prices up 5.3% year on year

The prices of services (total) were up 5.3% in June 2023 on the same month of the previous year.Net rents exclusive of heating expenses had a dampening effect on prices (+2.0%) and therefore continue to play an important role in the below-average increase in service prices. In addition, the introduction of the Germany ticket has had a slight downward effect on price developments since May 2023. However, an upward base effect enters into play from June 2023 due to the availability of the 9-euro ticket in the period from June to August 2022. Therefore, short-distance rail tickets cost much more in June 2023 (+65.2%) than in June 2022 (May 2023: +0.6%) despite the introduction of the Germany ticket. Combined tickets for rail, bus and the like were also markedly more expensive as a result, more than doubling in price (+112.8%) from June 2022 (May 2023: -22.9%). In addition, the prices of several other services increased considerably, for instance maintenance and repair of dwellings (+15.7%), services of social facilities (+11.0%) and restaurant services (+8.4%).

Prices up 0.3% on the previous month

Compared with May 2023, the consumer price index rose by 0.3% in June 2023. Price increases were recorded in particular for package holidays (+6.1%) and overnight stays (+1.7%).

Food prices dropped slightly (-0.2%) compared with the previous month, with a particular decline registered for the prices of fresh vegetables (-3.7%) and dairy products (-1.8%). A similar decrease was observed in the prices of energy (total) (-0.2%). For example, the prices of electricity (-1.1%) and natural gas (-1.0%) were slightly lower than in the previous month.

Source: DESTATIS
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