Germany's consumer price inflation continued its downward trajectory in September, reaching its lowest point in over three and a half years, as confirmed by Destatis data released on Friday. The annual rise in the consumer price index moderated to 1.6% in September, a decrease from 1.9% in August, aligning with preliminary estimates from September 30.
This marks the slowest inflation rate since February 2021, when the rate was 1.5%. The primary factor for this decline was a significant 7.6% drop in energy prices. Conversely, food price inflation experienced a slight uptick, moving to 1.6% from the previous month's 1.5%.
When excluding food and energy, core inflation saw an increase to 2.7% from 2.5%. The data also revealed that goods prices declined by 0.3%, while service costs increased by 3.8% compared to the previous year.
On a monthly basis, consumer prices showed no movement in September, consistent with initial estimates. Inflation, as measured by the harmonized index of consumer prices (HICP), also slowed to 1.8% from 2.0% in August. The HICP fell by 0.1% monthly, with figures remaining unchanged from the initial report.