Unexpected Rise in Inflation

Germany witnessed a significant increase in its annual inflation rate, reaching 2.6% in December, as per the preliminary report from the Federal Statistical Office (Destatis). This figure surpassed the expectations of analysts, marking a notable uptick from the previous 2.2%.

Monthly Consumer Price Index Increase

On a month-over-month basis, the Consumer Price Index (CPI) experienced a 0.4% rise compared to November. Similarly, the Harmonized Index of Consumer Prices saw a 2.9% increase year-over-year and a 0.7% rise monthly.

Food and Energy Prices in December

December's data highlighted a 2.0% increase in food prices compared to the same month in the previous year. In contrast, energy prices witnessed a 1.7% decrease year-over-year, indicating a mixed trend in the cost of essential goods and services.