Germany’s annual inflation rate was 8.6% in December of 2022, the lowest in four months and in line with preliminary estimates, but well above the European Central Bank’s target of about 2%. Goods inflation slowed sharply (13.9% vs 17.1% in November) due to a softer rise in costs of both energy (34.7% vs 38.7%) and food (20.7% vs 21.1%). Meanwhile, services inflation accelerated (3.9% vs 3.6%), and rent prices advanced by 1.9%, the same pace as in the previous month. On a monthly basis, consumer prices declined 0.8% in December, following a 0.5% fall in November. The EU-CPI harmonized rose 9.6% on the year and dropped 1.2% month-on-month. Considering full 2022, inflation was 7.9%
source: Federal Statistical Office
