Press release No. 025 of 19 January 2022
Consumer price index, December and year 2021
+5.3% on the same month a year earlier (provisional result confirmed)
+0.5% on the previous month (provisional result confirmed)
+3.1% on an annual average in 2021 compared with 2020 (provisional result confirmed)
Harmonised index of consumer prices, December and year 2021
+5.7% on the same month a year earlier (provisional result confirmed)
+0.3% on the previous month (provisional result confirmed)
+3.2% on an annual average in 2021 compared with 2020 (provisional result confirmed)
WIESBADEN − Consumer prices in Germany rose by 3.1% in 2021 on an annual average compared with 2020. The main reason was the high monthly inflation rates in the second half of 2021. The Federal Statistical Office (Destatis) also reports that the inflation rate in the previous year had been +0.5%. A higher year-on-year rate of price increase than in 2021 was last measured almost 30 years ago (1993: +4.5%).
In December 2021, the inflation rate, measured as the year-on-year change in the consumer price index, stood at +5.3%. It thus reached its highest level in 2021 at the end of the year.
High inflation rate in 2021 on 2020 has various reasons
The annual rate is mainly due to the high monthly inflation rates in the second half of 2021. “There are various reasons for the price developmentin 2021, which include base effects caused by the low prices in 2020.Especially the temporary reduction of value added tax rates in the second half of 2020 and the sharp decline in mineral oil product prices in the previous year had an upward effect on the current overall inflation rate”, said Dr. Georg Thiel, President of the Federal Statistical Office. “In addition to the temporary base effects of the past, there are more and more crisis-related effects such as delivery bottlenecks and marked price increases at upstream stages in the economic process. These are partly reflected in the consumer price index”.
Prices of energy products in particular up on an annual average in 2021
The prices of energy products were markedly up by 10.4% in 2021 year on year, following a 4.8% decrease in 2020. Consumers had to pay markedly more in 2021 for heating oil (+41.8%) and motor fuels (+22.6%). The prices of other household energy such as natural gas (+4.7%) and electricity (+1.4%) rose, too. Like the base effects, which were due to the very low prices in 2020, the CO2 charge introduced at the beginning of the year had an upward effect on prices here. Excluding energy prices, the annual rate of price increase in 2021 would have been +2.3%.
Food prices rose 3.2% in 2021 compared with 2020
Food prices rose 3.2% in 2021 compared with 2020. The price increase surged in the second half of 2021 due to the base effect caused by the reduction of value added tax rates. The prices of all food groups were markedly up in 2021, in particular edible fats and oils (+5.3%) and vegetables (+3.9%).
Prices of goods rose by 4.3% in 2021 on 2020, service prices by just 2.1%
The prices of goods (total) were up 4.3% on an annual average in 2021 on 2020, especially non-durable consumer goods recorded a 5.4% increase. The prices of durable consumer goods rose 2.4%, including vehicles (+4.5%) as well as furniture and lighting equipment (+3.2%). The prices of services (total) were up 2.1% in 2021 compared with the previous year. Net rents exclusive of heating expenses (+1.3%) had a downward effect on prices. Much stronger price increases were recorded for some services like, for example, services of social facilities (+5.4%), maintenance and repair of vehicles (+4.4%) as well as hairdresser services and other services for personal care (+4.0%). Telecommunications prices remained nearly unchanged (+0.1%), while for example long-distance rail tickets were slightly less expensive (-1.8%).
Inflation rate up 5.3% in December 2021, mainly because of higher energy prices
Overall, consumer prices increased by 5.3% in December 2021 compared with December 2020. This means that the monthly inflation rates continued to grow mainly in the second half of 2021. In addition to the base effect caused by the temporary reduction of value-added tax rates, the high inflation rate in December 2021 was again due to the prices of energy products. Energy prices exceeded the level of the previous year by 18.3%. CO2 pricing and the development of raw material prices had an additional impact. A year-on-year price increase was recorded especially for heating oil (+61.0%) and motor fuels (+33.8%). Food prices showed an above-average increase of 6.0% in the same period (November 2021: +4.5%). In particular vegetable prices went up (+9.9%). Excluding food and energy prices, the inflation rate of December 2021 would have been +3.7%. Excluding energy prices it would have stood at +3.8%.
In December 2021, the prices of goods (total) rose by 7.8% compared with the same month a year earlier. Apart from energy and food, consumers had to pay more for clothing and footwear (+5.5%). In contrast, the prices of services (total) were up by 3.1% over the same period. Price increases were recorded, for example, for net rents exclusive of heating expenses (+1.5%) and for some other services (such as maintenance and repair of vehicles: +6.0%; services of social facilities: +4.6%).
Food prices and prices of rail services increased month on month
Compared with November 2021, the consumer price index rose by 0.5% in December 2021. Rail tickets, for example, became more expensive as a result of the annual adjustments of railway fares in December (+2.3%). Food prices also went up (+1.1%, including vegetables: +3.7%). Energy prices however declined at the end of the year compared with the previous month, especially the prices of heating oil (-6.0%) and motor fuels (-4.1%).
Overall index / subindex | Weighting | 2021 Annual average | December 2021 | |
|---|---|---|---|---|
| Change on 2020 | Change on the same period a year earlier | Change on the preceding month | ||
| in per mill | in per cent | |||
1: Results do not include charges. ( ) Limited informational value due to somewhat limited statistical reliability as imputation rates are high | ||||
| Overall index | 1,000.00 | 3.1 | 5.3 | 0.5 |
| Food and non-alcoholic-beverages | 96.85 | 3.1 | 5.9 | 0.9 |
| Food | 84.87 | 3.2 | 6.0 | 1.1 |
| Meat and meat products | 18.60 | 3.0 | 5.3 | 0.3 |
| Fruit | 8.88 | 1.7 | 2.7 | 2.1 |
| Vegetables | 11.08 | 3.9 | 9.9 | 3.7 |
| Alcoholic beverages and tobacco | 37.77 | 2.6 | 3.6 | 0.3 |
| Clothing and footwear | 45.34 | 1.8 | 5.5 | -0.9 |
| Housing, water, electricity, gas and other fuels | 324.70 | 2.3 | 3.7 | 0.1 |
| Net rent exclusive of heating expenses | 196.32 | 1.3 | 1.5 | 0.1 |
| Household energy | 68.82 | 4.7 | 11.0 | 0.2 |
| Electricity | 25.92 | 1.4 | 3.6 | 0.4 |
| Gas 1 | 13.53 | 4.7 | 12.1 | 2.4 |
| Heating oil 1 | 7.01 | 41.8 | 61.0 | -6.0 |
| Furniture, lighting equipment, appliances and other household equipment | 50.04 | 2.3 | 4.3 | 0.5 |
| Health | 46.13 | 0.5 | 1.6 | 0.1 |
| Transport | 129.05 | 8.6 | 13.2 | -0.7 |
| Motor fuels | 35.01 | 22.6 | 33.8 | -4.1 |
| Supergrade petrol | 25.66 | 22.0 | 31.7 | -4.8 |
| Diesel fuel | 8.64 | 24.0 | 38.4 | -2.8 |
| Communication | 26.72 | 0.0 | 1.7 | -0.1 |
| Recreation and culture | 113.36 | 2.8 | 5.2 | 5.1 |
| Package holidays | 26.62 | (1.6) | (11.8) | 24.6 |
| Education | 9.02 | 1.9 | 1.9 | 0.0 |
| Restaurant and accommodation services | 46.77 | 2.7 | (4.0) | 0.3 |
| Miscellaneous goods and services | 74.25 | 3.3 | 4.0 | 0.1 |
| Overall index | ||||
| Excluding food and energy | 811.30 | 2.3 | 3.7 | 0.8 |
| Excluding energy (household energy and motor fuels) | 896.17 | 2.3 | 3.8 | 0.8 |
| Excluding heating oil and motor fuels | 957.98 | 2.3 | 4.0 | 0.9 |
| Goods | 468.16 | 4.3 | 7.8 | -0.1 |
| Non-durable consumer goods | 297.54 | 5.4 | 9.4 | -0.1 |
| Energy | 103.83 | 10.4 | 18.3 | -1.5 |
| Services | 531.84 | 2.1 | 3.1 | 1.1 |
Methodological notes:
During the year, some prices could not be collected on a monthly basis due to the measures taken to contain the coronavirus pandemic. The quality requirements however continued to be met. Where quality reductions were observed for specific product groups, the results have been marked accordingly. More information about the methods used during the corona crisis and the impact on price collection is provided in our methodological paper.
For more background information and analyses regarding the consequences of the coronavirus pandemic for price development please refer to our “StatGespräch” podcast on inflation (in German). There we also shed some light on the role of base effects.
Using our Personal Inflation Calculator, you may also compare the official inflation rate with your personal one by modifying the weights of some products so that these correspond better to your own consumer habits.
The consumer price index results are also available on the Corona Statistics webpage of the Federal Statistical Office together with other indicators which can be used to assess the economic consequences of the coronavirus pandemic.
Crisis Monitor enables comparison between corona crisis and financial and economic crisis
The consumer price index also forms part of the “Crisis Monitor” (www.destatis.de/krisenmonitor), by means of which the Federal Statistical Office compares the development of major short-term indicators in the corona crisis and the financial and economic crisis of 2008/2009. The Crisis Monitor complements the Corona statistics webpage (www.destatis.de/corona), which provides statistical information on the economic and social consequences of the coronavirus pandemic.
On 20 January 2022, the Statistical Office of the European Union (Eurostat) will publish the euro area inflation rate for December 2021. The coronavirus pandemic, the associated restrictions on public life and the resulting consequences required a changed approach to the annual updating of the product weights used in the harmonised index of consumer prices (HICP) for the year 2021. A methodological paper which discusses this issue is provided on the webpage of the Federal Statistical Office. The HICP product weights explain a considerable part of the difference between the CPI and the HICP for Germany.
More information on consumer price statistics is contained in Fachserie 17, Reihe 7 “Verbraucherpreise für Deutschland” and in the monthly online report on “Harmonisierte Verbraucherpreisindizes”. Detailed data of consumer price statistics can be found in the tables on the consumer price index (61111-0004) and (61111-0006) and on the harmonised index of consumer prices (61121-0002) and (61121-0004) in the GENESIS-Online database.
