In December, Germany's inflation rate accelerated to 3.8%, driven by an increase in energy and food costs. The consumer price index rose by 3.7% compared to the previous year, according to the first estimate of the Federal Statistical Office (Desatis). For its part, France also saw an increase in inflation, with the CPI reaching 3.7% in December, due to an increase in energy and services prices.
According to the first estimate published by the Federal Statistical Office (Desatis), Germany's consolidated inflation rate accelerated in December, reaching 3.8%. This number represents a significant increase compared to the 2.3% recorded in the previous month, which represents the lowest since 2021.
The first estimate published by Destatis indicates that The German Consumer Price Index (CPI) is expected to reach 3.7% year-on-year in December. This represents an increase of half a percentage point compared to the 3.2% recorded in November. The recovery in prices was mainly due to a significant rise in the cost of energy by 4.1%, after falling by 4.5% year-on-year in November.
The increase in food prices moderated in December, reaching 4.5% compared to 5.5% recorded in the previous month. On the other hand, services also showed a moderate increase in growth, reaching 3.2%, that is, two-tenths lower than in November. However, excluding the impact of food and energy, core inflation was 3.5%, down from 3.8% in November.
As in Germany, France saw a rise in inflation in December. According to the first estimate published by the National Institute of Statistics and Economic Studies (Insee), France's consumer price index reached 3.7% year-on-year in December, compared to 3.5% recorded in November. This increase is due to the annual acceleration in energy and services prices.
In France, energy prices rose by 5.6% year-on-year in December, compared to a 3.1% increase in November. Furthermore, food prices rose 7.1% in December, six-tenths lower than the previous month. However, fresh food saw an 8.8% increase, compared to 6.6% in November. As for services, their prices rose by 3.1% on an annual basis in December, compared to 2.8% in November.
France's standardized inflation rate, which Eurostat uses in its statistics, was 4.1% in December, compared to 3.9% in November. This rise in inflation reflects higher energy and service prices in the last month of 2023.
Tomorrow December inflation figures for the entire eurozone will be published. They are expected to show a rebound in inflation from the 2.4% recorded in November, ending six months of consecutive declines. These data reflect the current economic and financial situation in Europe and are considered important indicators for investors and analysts.
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