Latvia experiences a 1.1% rise in annual inflation during April
In April 2024, consumer prices in Germany saw a significant increase compared to the previous year, rising by 45.9%. This increase was driven by a 46.0% rise in prices of goods and a more moderate 43.6% increase in prices of services compared to 2015.
The hike in consumer prices between 2015 and April 2024 was not primarily due to rises in prices of transport, alcoholic beverages and tobacco products, or health care. Instead, it was influenced by a drop in prices within the miscellaneous goods and services group, which contributed -0.2 percentage points to the price level changes.
Compared to March 2024, the average level of consumer prices in April 2024 increased by 0.5%. This increase was primarily due to rises in prices of clothing and footwear, alcoholic beverages and tobacco products, and a decrease in prices within the miscellaneous goods and services group.
The price level changes in April 2024 were also affected by a decrease in prices within the miscellaneous goods and services group. The decrease in prices of goods and services related to housing by 1.1 percentage points between April 2023 and April 2024 also played a role in these changes.
The rise in prices of clothing and footwear contributed 0.4 percentage points to the price level changes in April 2024. Alcoholic beverages and tobacco products also contributed to the price level increase, with a 0.2 percentage point rise.
It's worth noting that the price level for consumer goods in Germany in April 2024 compared to April 2023 changed primarily due to a decrease in the inflation rate from 5.9% in 2023 to about 2.1-2.2% in April 2024. This decrease was driven by falling energy costs and a general stabilization of prices after earlier high inflation, although still above the European Central Bank's 2% target.
The price changes in April 2024, compared to April 2023, were also influenced by a rise in prices of transport, alcoholic beverages and tobacco products, health care, and a drop in prices of goods and services related to housing.
In conclusion, while consumer prices in Germany saw a substantial increase between 2015 and April 2024, the trend seems to be stabilizing, with prices of goods and services related to housing and miscellaneous goods and services group showing decreases. However, prices of transport, alcoholic beverages and tobacco products, health care, and clothing and footwear continue to rise.
