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Germany Inflation Ticks Up to 2.4% in September, Highest This Year

Faster services inflation and a weaker energy drag sharpen questions about persistence.

Overview

  • Destatis confirmed consumer prices rose 2.4% year on year in September and 0.2% month on month, marking a second straight increase and matching the harmonized index at 2.4%.
  • Services led the rise with prices up 3.4% from a year earlier, including stronger gains in public transport, social care and health services, while net cold rents were 2.0% higher.
  • Food prices were 2.1% higher than a year ago, with sharp divergences such as chocolate up 21.2% and coffee/tea/cocoa up 17.8%, while olive oil fell 22.6% and vegetables declined 2.1%.
  • Energy remained 0.7% cheaper than a year earlier, but its dampening effect faded as petrol rose 1.1% and household energy fell a lesser 1.9% than in prior months.
  • Core inflation edged up to 2.8%, and wholesale prices rose 1.2% year on year with food and beverages up about 4.2%, even as some economists describe September’s jump as a temporary outlier.