Germany’s inflation rate showed no signs of slowing down at the beginning of the year, as energy and food prices remained high due to the war in Ukraine. According to the Federal Statistics Office, the harmonized consumer price index rose by 9.2% on the year in January, and 0.5% from December. Non-harmonized standards showed an 8.7% increase from the previous year, and a 1.0% increase from December.
Commerzbank’s chief economist Joerg Kraemer stated that following the methodological revision of the inflation basket, there has been no clear downward trend since the fall. He believes that the European Central Bank should continue to raise its key interest rates significantly.
The statistics office reported that energy product prices were 23.1% higher than the previous year, while food prices increased by 20.2%. Prices of goods were up 12.7%, and services prices increased by 4.5%. Households paid higher prices for energy and food in particular. Excluding energy prices, the inflation rate was at 7.2%.