In December, the inflation rate fell to 1.8 percent on an annual basis, compared with 2.3 percent in November, according to preliminary data from the Federal Statistical Office.
It comes as Europe’s largest economy struggles to recover from years of high inflation due to the coronavirus pandemic and Russia’s invasion of Ukraine in February 2022.
With energy prices surging, inflation in Germany reached 6.9 percent in 2022 and held at 5.9 percent in 2023, the highest rates since the country’s reunification in 1990.
In 2024, the inflation rate returned to 2.2 percent annually, reports dpa.
Higher inflation rates reduce the purchasing power of consumers, who can buy fewer goods and services for each euro.
The European Central Bank, in charge of monetary policy in the 21-member eurozone, targets a medium-term inflation rate of 2 percent to maintain price stability.
(Vijesti.ba / FENA)
