Germany's annual inflation hits 11-month high in December

By Tuba Ongun

Germany's annual consumer inflation surged 2.6% in December 2024, its highest level since last January, according to flash data released on Monday.

The figure rose from November's four-month high of 2.2% and exceeded market forecasts of 2.4%, according to data from Destatis.

The hike was driven by rising food and services prices and a slower decline in energy prices.

Energy prices dropped 1.7% year-on-year in December 2024 compared to a 2.1% decrease in the previous month.

The cost of food gained 2% on an annual basis in December, accelerating from a 1.8% increase in November.

Services inflation climbed to 4.1% in December, compared to 4% in November.

Core inflation, which excludes food and energy prices, stood at 3.1% in December, up from 3% in the prior month.

On a monthly basis, consumer prices rose 0.4% in December, reversing a 0.2% decline in November.

Destatis also reported that the annual average inflation rate for 2024 is projected to be 2.2%.