Prices in Germany rose a little less sharply in December. Inflation was 8.6% in December, the lowest rate since August.
This can be seen from new data from the German statistical agency Destatis. In November and October the inflation rate was even higher, at 10.0% and 10.4% respectively.
Inflation for all of 2022 was 7.9%, the highest rate since German reunification.
One reason for the decline is the German government’s massive energy aid package. For example, in December the government paid an advance on household energy bills. In 2023, the maximum prices will also apply to households and businesses.
The Bundesbank, Germany’s central bank, expects inflation to decline slightly in 2023, but to remain above 7%.
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