Inflation rates across Germany rose sharply in July, according to preliminary data released by the various state statistical offices on Thursday morning. While the Federal Statistical Office will release its national estimate for the inflation rate later in the afternoon, the immediate trends in all states show a clear increase compared to June.
Several states reported significant jumps. For instance, the largest state, North Rhine-Westphalia (NRW), saw its annual rate climb from 2.1% to 2.7%. Similar increases were noted in Bavaria, which rose from 2.5% to 2.8%, Baden-Württemberg, which moved from 2.1% to 2.5%, and Lower Saxony, which increased from 2.5% to 2.7%.
A major contributing factor to the rising prices was the removal of the fuel discount. This withdrawal caused substantial price increases for fuels; in NRW, for example, diesel prices rose by 20.0% and gasoline prices by 15.8% compared to the previous month. However, the increase was slightly tempered by a factor in the clothing retail sector. The state statistical office for NRW noted that special offers and “sales” during July led to price decreases of approximately five percent compared to the previous month, thus counteracting what might have been a steeper overall increase.
Based on the state-level data available so far, the national inflation rate-which was calculated by the Federal Statistical Office at 2.3% for June-is now projected to rise to a figure between 2.6% and 2.8%, with an average estimate of 2.7%.
