Harmonised Index of Consumer Prices

Inflation update

In June 2024, the inflation rate (HICP) in Germany fell to 2.5 %, down from 2.8 % in May. Here, energy prices were significantly lower than in the previous year. On the other hand, food prices rose somewhat more sharply again. While price dynamics continued to weaken for other goods, they remained stubbornly high for services. Accordingly, core inflation (HICP excluding energy and food) only fell slightly in June, from 3.5 % to 3.3 %.

The next update will be on 30 July 2024 (HICP flash estimate for July 2024).

ItemYear-on-year percentage change Average1 (%)Weighting (%)
Jun 24May 24Apr 241999 - 20232024
HICP (Germany)

+2.5

+2.8

+2.4

+2.0

100.0

 Energy

-2.2

-1.2

-1.3

+4.5

10.4

 HICP excluding energy

+3.1

+3.2

+2.8

+1.6

89.6

  Food2

+2.3

+2.1

+2.3

+2.7

16.2

 HICP excluding energy and food

+3.3

+3.5

+2.9

+1.4

73.4

  Industrial goods3

+1.1

+1.3

+1.8

+1.0

28.0

  Services

+4.7

+4.7

+3.6

+1.7

45.4

CPI (Germany)

+2.2

+2.4

+2.2

+1.8

 

Sources: Federal Statistical Office, Eurostat, Bundesbank calculation. 1 Long-term geometric average. 2 Including alcohol and tobacco. 3 Excluding energy.

Background

The Harmonised Index of Consumer Prices (HICP) is the key measure of price stability in the euro area. It measures the average change in prices of all goods and services purchased by households for consumption purposes. The year-on-year percentage change in the HICP serves as the basis for assessing price stability in the euro area.Annual HICP year-on-year percentage change is here also referred to as the inflation rate. The euro area HICP is derived from the HICPs of the euro area countries.

As a general rule, the HICP is calculated on a monthly basis for euro area countries using data from the respective national consumer price indices (CPIs) and relying on harmonised concepts and methods. The Federal Statistical Office calculates the HICP data for Germany.

In Germany, the main difference between the HICP and the national CPI is that the former, in accordance with the European methodological guidelines, does not include owner-occupied housing costs. As a result, services have a smaller weight in the HICP than in the CPI. Accordingly, divergent price trends for goods and services may have disparate effects on the HICP and the CPI.