Press release No. 020 of 16 January 2024
Consumer price index, December and year 2023
+3.7% on the same month a year earlier (provisional result confirmed)
+0.1% on the previous month (provisional result confirmed)
+5.9% on an annual average basis in 2023 compared with 2022 (provisional result confirmed)
Harmonised index of consumer prices, December and year 2023
+3.8% on the same month a year earlier (provisional result confirmed)
+0.2% on the previous month (provisional result confirmed)
+6.0% on an annual average basis in 2023 compared with 2022 (provisional result confirmed)
WIESBADEN – Consumer prices in Germany rose by 5.9% in 2023 on an annual average basis compared with 2022. The Federal Statistical Office (Destatis) reports that the rate of inflation for 2023 was therefore lower compared with a year earlier. In 2022, it stood at +6.9%. "The rate of inflation for 2023 was below 2022's record high. At almost 6%, it is still at a high level, however. Food prices registered particularly sharp increases on an annual average basis in 2023", said Dr. Ruth Brand, President of the Federal Statistical Office. In December 2023, the inflation rate − measured as the year-on-year change in the consumer price index (CPI) – stood at +3.7%. It therefore rose towards the end of the year, after having declined in the preceding months.
Energy product prices rose 5.3% in 2023 compared with 2022
"As in the previous year, the increase in prices in 2023 was affected by the impact of war and multiple crises, which shaped the development of prices at all stages in the economic process," Brand added. "Furthermore, special effects - also as a result of relief measures that had been implemented - were apparent in the monthly inflation rates at the consumer level during the year." For example, as in 2022, relief measures partly mitigated energy price increases in 2023. The prices of energy products rose 5.3% in 2023 year on year, following a steep hike of 29.7% in 2022. In the course of 2023, pressure on the overall development of energy prices eased in the period from March to December 2023: monthly rates of inflation for energy were much lower than at the start of the year and a downward price trend was even observed in October and November 2023. However, the result for 2023 is largely due to the elevated price level of the preceding year with which it is compared. Prices of household energy rose 14.0% on an annual average basis in 2023. For example, natural gas cost 14.7% more than a year earlier and electricity was up 12.7%. Among household energy products, the price of heating oil, by contrast, fell substantially by an annual average of 22.2% in 2023 compared with 2022. Motor fuel also cost less on an annual average basis (-5.8%). The development of the price of individual motor fuels was very heterogeneous, however (diesel fuel: -11.3%; supergrade petrol: -4.0%; liquefied petroleum gas: +3.0%). Excluding energy prices, the year-on-year rate of price increase in 2023 would have been +6.0%.
Particularly sharp rise in food prices, up 12.4% on an annual average basis in 2023
Consumers again had to pay markedly more for food in 2023, with prices increasing 12.4% year on year. In 2022, food prices had already increased by 13.4%, which was well above overall inflation. On an annual average basis in 2023, almost all food groups were affected by price rises, with substantial increases especially evident for bread and cereals (+16.4%), dairy products and eggs (+15.7%) and sugar, jam, honey and other confectionery (also +15.7%). The prices of other food groups, too, such as fish, fish products and seafood (+14.7%) or vegetables (+13.3%) registered
above-average increases in 2023 compared with 2022. By contrast, on an annual average basis the prices of edible fats and oils (-3.5%, including butter: -17.8%) decreased in 2023.
Year-on-year rate of price increase excluding food and energy at +5.1% in 2023
The year-on-year rate of price increase excluding energy and food, often referred to as "core inflation", was +5.1% in 2023. It therefore increased on 2022, when it stood at +3.8%. This rate also demonstrates that inflation was also high in other product groups on an annual average basis in 2023.
Goods prices increased by 7.3% in 2023 year on year, service prices by 4.4%
The prices of goods (total) rose by 7.3% on an annual average basis in 2023 compared with 2022. The prices of non-durable consumer goods were up 8.8%; notable price increases were recorded not only for food (+12.4%), but also for non-alcoholic beverages (+10.5%), alcoholic beverages and tobacco (+8.5%). Durable consumer goods cost 4.8% more in 2023; here, too, substantial price rises were determined for several goods such as furniture and lighting equipment (+6.9%) and vehicles (+6.3%).
There were below-average increases (+4.4%) in the prices of services (total) in 2023 compared with the previous year. Net rents exclusive of heating expenses, which are important for this development, rose an average 2.0% in 2023. The price development in public short-distance passenger transport was also below the 2023 average, which was mainly due to the introduction of the Germany ticket. Prices for combined transport rose by 2.5% in 2023 compared with 2022. Much stronger price increases were recorded for some services such as package holidays (+9.1%), maintenance and repair of vehicles (+8.4%) and restaurant and accommodation services (+8.1%).
Higher inflation rate in December 2023 mainly due to energy price development
Compared with December 2022, the inflation rate in Germany was up 3.7% in December 2023. The rise in prices therefore accelerated at the end of the year, following a 3.2% increase in November 2023. A jump in energy prices was seen in December 2023. The year-on-year inflation rate in December 2023 was +4.1%, after -4.5% in November 2023. The development of energy prices in December 2023 was driven by a base effect originating from a one-off measure, known as "December immediate assistance", whereby the Federal Government footed the bill for households' monthly advance payments on gas and heating in December 2022. Introduced by the Federal Government, this measure had a dampening effect on the overall index in December 2022 and, consequently, drove up the index in December 2023. Natural gas cost 34.0% more in December 2023 than a year earlier, and district heating even 58.4% more. By contrast, electricity prices remained stable compared with December 2022. Light heating oil cost 11.0% less than a year earlier, and motor fuel prices fell by 1.1%.
Food prices up 4.6% on December 2022
The increase in food prices continued to slow in December 2023 (+4.6% on the same month a year earlier). In November 2023, the rate had been +5.5%. In several food groups, substantial year-on-year price increases continued to be observed also in December 2023; for example, bread and cereals prices went up by +8.2%.
Excluding food and energy prices, the inflation rate would have been +3.5% in December 2023. The inflation rate has stayed below the four percent mark since November 2023 as the rate of price increase also slowed gradually in other product groups.
Goods prices rose by 4.1% on December 2022, service prices by 3.2%
The prices of goods (total) were up 4.1% in December 2023 on the same month a year earlier. A price increase of 4.9% was recorded for non-durable consumer goods including food and energy, and durable consumer goods also became more expensive (+2.9%, including clothing: +3.4%; furniture and lighting equipment: +3.0%). The prices of services (total) were up 3.2% in the same period, including net rents exclusive of heating expenses: +2.0%. Markedly higher prices were recorded, for example, for restaurant and accommodation services (+5.6%). The Germany ticket, which has been available since May 2023, had a dampening effect on the increase in service prices also in December 2023. A particular price drop was observed for combined tickets for rail, bus and the like (-22.9%) compared with December 2022.
Overall energy prices down 1.9% on the previous month
Compared with November 2023, the consumer price index rose by 0.1% in December 2023. Food prices, too, remained almost unchanged (+0.1% including fruit: +1.5%). Energy prices, however, fell by 1.9% compared with the previous month. Price decreases were observed in particular for mineral oil products (-3.3%; of which motor fuels: -3.3%; heating oil: -3.0%). By contrast, rail tickets became more expensive in December 2023 as a result of the annual price adjustment, with a particularly pronounced increase in the prices of short-distance rail tickets (+5.1%).
Methodological notes:
The “Germany ticket” has been taken into account in the consumer price index since the start of May 2023. It resulted in price reductions in public regional and local passenger transport in May 2023. The Germany ticket had a downward effect on the development of prices especially in the services product group also in December 2023. The current results are also impacted by other measures of the Federal Government's third relief package, which are aimed in particular at containing the increase in energy prices. The development of energy prices in December 2023 was driven by a base effect originating from the measure known as "December immediate assistance" of 2022. An overview explaining the different relief measures and their impact on the consumer price index is available on the website of the Federal Statistical Office.
The consumer price index (CPI) and the harmonised index of consumer prices (HICP) differ in coverage and methodology. In contrast to the HICP, the CPI also includes household expenditure on owner-occupied housing, games of chance and broadcasting fees. In addition, the HICP product weights are updated annually. As the weight of housing is much smaller in the HICP basket, price increases in other product groups have a larger impact on the HICP than on the CPI. These differences (coverage, methodology and weighting) explain the differences between the CPI and the HICP for Germany. Explanatory notes and a methodological paper which discusses this issue are provided on the website of the Federal Statistical Office.
Inflation Calculator for personal rate of inflation:
Consumers can use the Personal Inflation Calculator of the Federal Statistical Office to adapt their monthly consumption expenditure on individual product groups according to their own consumption patterns and to calculate their personal inflation rate. In addition, the Price Kaleidoscope gives an overview of the price trend and the weights of various products.
Overall index / subindex | Weighting | 2023 | December 2023 | |
|---|---|---|---|---|
| Change on annual average of 2022 | Change on the same month a year earlier | Change on the previous month | ||
| in per mill | in per cent | |||
| Overall index | 1,000.00 | 5.9 | 3.7 | 0.1 |
| Food and non-alcoholic-beverages | 119.04 | 12.3 | 4.9 | 0.0 |
| Food | 104.69 | 12.4 | 4.6 | 0.1 |
| Meat and meat products | 22.16 | 8.3 | 3.0 | -0.3 |
| Fruit | 11.62 | 8.2 | 12.0 | 1.5 |
| Vegetables | 13.72 | 13.3 | 6.6 | 0.5 |
| Alcoholic beverages and tobacco | 35.26 | 8.5 | 7.1 | -0.3 |
| Clothing and footwear | 42.25 | 3.7 | 3.5 | -0.1 |
| Housing, water, electricity, gas and other fuels | 259.25 | 4.9 | 3.6 | -0.1 |
| Actual net rent exclusive of heating expenses | 68.30 | 2.1 | 2.1 | 0.2 |
| Imputed net rent exclusive of heating expenses | 104.13 | 2.0 | 2.0 | 0.2 |
| Household energy | 43.44 | 14.0 | 7.7 | -1.2 |
| Electricity | 24.50 | 12.7 | 0.0 | -1.1 |
| Gas 1 | 6.07 | 14.7 | 34.0 | -0.7 |
| Heating oil 1 | 1.70 | -22.2 | -11.0 | -3.0 |
| Furniture, lighting equipment, appliances and other household equipment | 67.78 | 6.4 | 3.2 | 0.0 |
| Health | 55.49 | 3.0 | 2.6 | 0.1 |
| Transport | 138.22 | 3.0 | 2.1 | 0.3 |
| Motor fuels | 30.46 | -5.8 | -1.1 | -3.3 |
| Supergrade petrol | 23.19 | -4.0 | 0.7 | -3.3 |
| Diesel fuel | 6.92 | -11.3 | -6.2 | -3.7 |
| Communication | 23.35 | 0.4 | 0.6 | 0.0 |
| Recreation and culture | 104.23 | 5.7 | 2.6 | 0.7 |
| Package holidays | 13.22 | 9.1 | 3.0 | 6.1 |
| Education | 9.06 | 3.8 | 3.7 | 0.1 |
| Restaurant and accommodation services | 47.20 | 8.1 | 5.6 | 0.1 |
| Miscellaneous goods and services | 98.87 | 6.5 | 5.3 | 0.1 |
| Overall index, excluding food and energy 2 | 821.41 | 5.1 | 3.5 | 0.3 |
More information:
Detailed results can be found in the tables on the consumer price index (61111-0004) and (61111-0006) and on the harmonised index of consumer prices (61121-0002) and (61121-0006) in the GENESIS-Online database. Special items shown in Tables (61111-0006) and (61121-0006) contain CPI and HICP results which are used to measure "core inflation". The table "Verbraucherpreisindex – Preisentwicklung für Nahrungsmittel" (only in German)" provides information on changes in the prices of individual food products.
Consumer price index results are also available on Dashboard Germany (www.dashboard-deutschland.de) (only in German). This data portal of the Federal Statistical Office combines up-to-date indicators from official statistics producers and other data providers on the topics of the economy, finance, health and mobility. The portal also contains the Economic Pulse Monitor tool (Pulsmesser Wirtschaft) (only in German) for real-time economic monitoring.
Russia’s attack on Ukraine and the related sanctions are having an impact on many parts of the economy and society. Relevant data and information are provided on a special webpage (www.destatis.de/ukraine) (only in German).
