On October 11, 2024, consumer prices in Germany rose by 1.6% compared to the same month a year earlier, according to data from the Federal Statistics Office (Destatis). This marks the lowest inflation level since February 2021, primarily driven by a 7.6% decline in energy prices. Despite a slight increase in food prices, the overall trend is seen as positive for consumers and the economy, which is still grappling with recession.
The European Central Bank (ECB) also responded to falling inflation by cutting interest rates for the second consecutive time this year, from 3.75% to 3.5%. This move is expected to reduce the financial burden on consumers and encourage investment.
In contrast, Argentina continues to face significant inflation challenges, with a Consumer Price Index (CPI) increase of 3.5% reported for September 2024. This follows a staggering 25% inflation rate in December 2023, reflecting ongoing economic struggles. The country remains the only member of Mercosur failing to stabilize its prices, with an annual inflation rate exceeding 101.6% for the first nine months of this year.