German inflation moderated in July for the second consecutive month after government measures

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The year-on-year inflation rate in Germany stood at 7.5% last July, which represents a reduction of one tenth compared to the 7.6% corresponding to June and four tenths compared to 7.9% May, thus accumulating two consecutive months of moderation in price escalation, thanks to the relief measures implemented by the country’s government, including discounts on public transport and fuel, as confirmed by the Federal Statistical Office (Destatis) .

“The main reason for the high inflation remains the rise in the prices of energy products,” said Georg Thiel, president of the Federal Statistical Office, after energy prices in Germany rose 35.5% in July, compared to 38% in June.

In particular, Thiel highlighted the “slight downward effect on the inflation rate” of the introduction of a temporary transport pass at a reduced price of 9 euros and the discount on the price of fuel, in addition to the elimination in July of the surcharge EEG.

Thus, the elimination of this surcharge on the bill allowed the year-on-year increase in electricity prices in July to be 18.1%, compared to 22% in June, while discounts in fuel prices limited the price increase to 23% from 33.2% in June. Additionally, heating oil prices rose 102.6%, including a 75.1% rise in gas.

On their side, food prices increased by 14.8% year-on-year in July, after rising 12.7% in June. Price increases were recorded for all food groups, including a 44.2% rise in the prices of edible fats and oils and a 24.2% rise in the price of dairy and eggs, while meat and meat products became 18.3% more expensive.

Excluding energy prices, Germany’s inflation rate stood at 4.4% in July, while the core rate, which also excludes food, stood at 3.2%.

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