Inflation in Saxony weakens in January

Inflation weakened in Saxony in January. Annual inflation is expected to have been 3.5 percent in January, according to the State Statistical Office in Kamenz on Thursday. This continues the trend of weakening inflation from 2023. Compared to December, consumer prices are expected to have risen by 0.4 percent.

The statisticians blamed price increases for ancillary housing costs (3.4 percent), among other things, for the rise in consumer prices. The costs for those with statutory health insurance also increased due to new care rate negotiations in outpatient (2.5 percent) and inpatient (0.2 percent) care. Energy prices also rose by 4.1 percent. Fuel prices (2.3%), on the other hand, rose less sharply than electricity, gas and other fuels (5.1%).

Following the end of the temporary VAT reduction, prices for food in restaurants, cafés and bars (3.2%) and fast food restaurants (2.0%) rose. Clothing and shoes were slightly cheaper than in the previous month (down 4.6%). The discontinuation of seasonal surcharges on prices for package holidays (-15.8 percent) and overnight stays (-1.9 percent) also had an impact on the overall trend.