## Inflation Slightly Rises, But Impact on Consumers Remains Limited
Inflation rose slightly in July, but its impact on consumers remains limited.
The fall in energy prices in particular dampened the inflation rate in July. Consumer prices rose by 2.3 percent last month compared to the same month last year, the Federal Statistical Office in Wiesbaden announced on Friday, confirming its first estimate. Food prices rose by 1.3 percent. Prices for services, such as insurance and catering services, rose above average by 3.9 percent.
Compared to June, consumer prices rose by 0.3 percent – air travel (plus 18.3 percent) and package holidays (10.1 percent) became more expensive during the summer travel season. In June, the inflation rate was 2.2 percent, and in May it was 2.4 percent.
The slight increase in July was mainly due to the decrease in energy product prices: they were 1.7 percent cheaper year-on-year. Fuels became cheaper by 0.4 percent, electricity by 6.2 percent and natural gas by 3.3 percent. However, there were also energy products that became more expensive: district heating by 31 percent and light heating oil by 7.7 percent.
When it comes to food, olive oil (45 percent) and chocolate (10.7 percent) became significantly more expensive due to poor harvests in their origin countries. Vegetables became 1.7 percent more expensive compared to July 2023. Dairy products were cheaper than a year ago, falling by 1.1 percent.
Prices for services also contributed to inflation in July, following the trend in May. Insurance, catering services, vehicle maintenance and repairs, and sports and leisure services were particularly more expensive than in the same month last year. Net rents rose by 2.2 percent.