Germany and Italy's annual inflation rates confirmed. Euronews Business looks at the factors influencing the economic trends in each country.
ADVERTISEMENTNew figures show that Germany's inflation rose to 3.7% YoY in December, indicating a 0.5% increase from the previous month and confirming preliminary data. In contrast, Italy's inflation dropped to 0.6%, reflecting a 0.1% decrease from the prior month, in another batch of statistics that confirmed initial estimates.
The inflationary pressure in Germany, experiencing a notable uptick for the first time in seven months, was significantly fueled by a 4.1% rise in energy prices compared to the previous year.
"The rate of inflation for 2023 was below 2022's record high," said Ruth Brand, president of Germany's Federal Statistical Office. "At almost 6%, it is still at a high level, however. Food prices registered particularly sharp increases on an annual average basis in 2023".
The German inflation figures were confirmed just after the country's statistical office announced that Germany's economy shrunk last year, despite initially more optimistic forecasts.
On the other hand, Italy's more positive inflation figures are mainly attributed to "reduced pressure on energy prices," which increased by 1.2%, in stark contrast to the +50.9% surge observed in 2022, according to the Italian National Institute of Statistics (Istat).
Nevertheless, Italy also faces a potentially gloomy 2024, due to declining consumer confidence, and contracting manufacturing.
