Inflation in Germany fell to 7.5 percent in July, according to an initial estimate by the Federal Statistical Office on Thursday.

It is the second decline in a row.

In June, inflation was 7.6 percent after 7.9 percent in May.

Svea Junge

Editor in Business.

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Goods increased in price by 14.1 percent compared to the same month last year.

Consumers had to pay 35.7 percent more for energy.

Food, on the other hand, cost 14.8 percent more, according to the statisticians, while consumers had to pay 2 percent higher prices for services.

The federal government's relief measures, such as the nine-euro ticket and the fuel discount, were apparently able to counteract a further increase in the consumer price index in July.

Michael Heise, chief economist at HQ Trust, does not yet see a turning point.

"Consumers must therefore expect high inflation rates until autumn," he said.

In September, he estimates, consumer prices are likely to rise by more than 8 percent year-on-year when government relief measures expire.

Dekabank chief economist Ulrich Kater does not expect inflation to ease before the winter.

“The Russian supply restrictions have raised the price of natural gas again.

The planned natural gas surcharge will increase inflation slightly in the coming months,” expects Kater.

Abolition of the EEG surcharge dampens the rise in electricity prices

The state statistical offices provide information on which goods and services were more expensive in July.

For the federal states of Bayer, North Rhine-Westphalia, Lower Saxony, Berlin, Brandenburg and Hesse, they reported inflation rates of between 7.6 and 8 percent in July compared to the same month last year.

Once again, energy prices rose the most.

In Lower Saxony, the prices for household energy increased by 45.4 percent - light heating oil with an increase of 104.5 percent.

Natural gas rose in price by 66.4 percent.

Consumers had to pay 16.5 percent more for electricity.

However, the abolition of the EEG surcharge on July 1, 2022 has mitigated the increases in electricity prices, according to the State Office for Statistics in Lower Saxony.

Fuels, on the other hand, cost 24.6 percent more in July.

In Bavaria, where fuel prices increased by 24.4 percent year-on-year, there was nevertheless a decline of 3.9 percent compared to June.

The tank discount could have had a relieving effect here.

Among the food items, products whose prices were influenced by the Russian war of aggression in Ukraine were again badly affected.

Wheat flour rose in price by 82.7 percent in Berlin and by 54.6 percent in Brandenburg compared to the same month last year.

The prices for sunflower, rapeseed oil and similar products rose by 76.5 percent in Berlin.

Ukraine is an important supplier for both wheat and oilseeds, which is currently largely absent due to the war.

Dairy products and eggs were 28.5 percent more expensive in Berlin in July and the prices for meat and meat products increased by 21.1 percent.

For fruit and vegetables, consumers had to dig 4.4 and 6.9 percent deeper into their pockets, respectively.

In Hesse, the prices for goods rose by a total of 13.8 percent in July compared to the same month last year, although they fell by 0.2 percent compared to June.

Year-on-year inflation was mainly driven by higher prices for consumer goods, which also include energy and food.

They increased by 18 percent.

But the prices for consumer goods also rose sharply.

Furniture and lighting were 10.4 percent, bicycles 9.7 percent and cars 9.3 percent more expensive than a year ago.