Germany's inflation climbs to 6.4% in June 2023
Inflation in Germany extends to 6.4 percent in June 2023, a rise of 0.3 percent from the month of May 2023, based on the latest report from the Federal Statistical Office. This rate is measured by the year-on-year change in the consumer price index (CPI), which takes into account the prices of various goods and services consumed by households in Germany.
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The driving force behind inflation is primarily the energy product sector, which has seen a 3 percent increase in prices compared to the previous year. This follows a 2. 6 percent increase in May 2023. However, it is important to note that the increase in energy prices has been lower than usual since March 2023 due to a base effect from the previous year. Additionally, the recent Russian attack on Ukraine has led to significant price increases in energy products.
The prices of natural gas have surged by 20.8 percent between June 2022 and June 2023, while electricity prices have experienced a surge of 10.5 percent. The inflation rate for June 2023, excluding energy prices, was 6.7 percent. The inflation rate dipped to 5.8 percent when both energy and food prices were excluded.
It is important to note that the core inflation figure for May 2023 stood at 5.4 percent, indicating that the prices of various product groups remain significantly high. When compared to June 2022, the prices of goods increased by 7.3 percent in the same month of 2023. Moreover, non-durable consumer goods saw a considerable increase of 8.8 percent, whereas 5.3 percent of the hike encountered in durable consumer goods from June 2022.
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According to Procurement Resource, from May 2023 to July 2023, inflation in Germany has risen by 0.3 percent. The primary cause of the increase in inflation is the rising energy prices. In May 2023, inflation was at 6.1 percent, which elevated to 6.4 percent in June 2023.
