Consumer prices in Germany rose by 1.8% on an annual average in 2017 compared with 2016. The increase was above the relevant levels of the past four years. Between 2014 and 2016, the year-on-year-rates of price increase were even below one percent each. The Federal Statistical Office (Destatis) also reports that the inflation rates as measured by the consumer price index ranged between +1.5% and +2.2% in the individual months of 2017. In December 2017, the inflation rate stood at +1.7%.

The marked increase in the year-on-year rate of price increase in 2017 was mainly due to energy prices. Compared with 2016, energy prices increased by 3.1% in 2017 after they had declined in the previous three years (2016: -5.4%; 2015: -7.0%; 2014: -2.1%). Regarding energy products, especially the prices of heating oil (+16.0%) and motor fuels (+6.0%) were up in 2017 year on year. Declining prices were however recorded for gas (-2.8%) and charges for central and district heating (-1.5%).