Although the inflation rate in Germany is falling, people have to pay higher food prices. Several product groups are affected.
Despite a slowdown in March, people in Germany are still feeling the effects of high inflation. Although the rise in energy prices has slowed, consumers are having to dig deeper into their pockets for food.
Overall, consumer prices rose by 7.4 percent in March compared to the same month last year. The Federal Statistical Office confirmed an initial estimate on Thursday. In January and February, the rate was 8.7 percent.
“For private households, the renewed increase in food prices in March had a particularly significant impact,” explained Ruth Brand, President of the Federal Statistical Office. Compared to the same month last year, food prices increased by 22.3 percent.
Vegetables are also significantly more expensive
Inflation increased after 21.8 percent in February and 20.2 percent in January. Among other things, dairy products and eggs (plus 34.6 percent), vegetables (plus 27.3 percent) and bread and cereal products (plus 23.8 percent) became significantly more expensive.
Overall, the inflation rate was below the 8.0 percent mark for the first time since August 2022. At that time, an annual rate of 7.0 percent was recorded.
stopped rising energy prices
By contrast, the rise in energy prices weakened significantly in March. Overall, energy prices rose by 3.5 percent compared to the same month of the previous year after growth of 19.1 percent in February. The effect was noticeable that energy prices had skyrocketed a year ago after the Russian war of aggression. The government price brakes for gas and electricity, which have been in effect since March 1, 2023, have also had an impact on prices.
Natural gas prices climbed 39.5 percent. Within a year, electricity rose by 17.1 percent and district heating by 16.4 percent. Light heating oil, on the other hand, fell by 35.7 percent and visits to the gas station by 16.1 percent.
Furniture and lighting also cost more
After the Russian war of aggression in Ukraine, inflation was initially driven primarily by higher energy and food prices. In the meantime, it is becoming increasingly broad. “Inflation has become more widespread and potentially more persistent,” said ECB Council member Francois Villeroy de Galhau recently.
In the meantime, inflation is also high in other goods sectors, explained statisticians. For example, furniture and lighting rose by 10.3 percent.
