Germany Consumer Price Index (CPI) m/m

The Consumer Price Index (CPI) for Germany measures the average price development of all goods and services, such as food, cars or repairs and rents, for which private households but also foreign tourists spend their money in Germany. It plays a central role in assessing inflation, real economic growth, wage negotiations and the deflation of national accounts.

The calculation is based on a shopping basket with 600 types of goods at the highest level, which remain constant for 5 years and for which price representatives are selected more frequently. Every month, more than 300,000 individual prices are collected manually, partly locally, partly centrally, as with Internet prices. Each of the 600 types of goods is weighted with the expenditure share, which is recorded by approx. 60,000 consumers, and converted into an average value.

The change in the index is calculated as a percentage change. It can be interpreted as a general rate of price change from the consumer's point of view and is calculated according to the following formula:
( 100 * new index level / old index level ) - 100

The consumer price index m/m reflects the percentage change in prices in the reference month compared with the previous month.

The Consumer Price Index is an important tool for measuring inflation and monetary stability and serves as a yardstick for wage bargaining and is included in GDP calculations. If its value rises, this usually has a positive effect on the currency.