Why two percent does not feel like two percent
Prices rose steeply in 2022, then the rate came down again. The shopping still does not feel like it did before.
That is because the rate measures the rise within one year, not the level. When the rate falls from eight percent to two, prices rise more slowly. Nothing gets cheaper.
The upper line is the annual rate, the lower one the price level since January 2020. The rate comes back, the level stays up.
On top of that, some prices are in front of you every week. Food and energy are noticed more than things you buy once in a while.
The twelve spending groups are published for Germany and the euro area only. What you see here is the euro area.
Prices since 2020-01, start = 100
The groups you meet most often
A falling rate is not a falling bill.
Source: Eurostat, HICP monthly data (index), prc_hicp_midx, Euro area (20 countries), as of 2025-12, retrieved 2026-10-05 · Eurostat, HICP item weights, prc_hicp_inw, Euro area (20 countries), as of 2025, retrieved 2026-10-05
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