The energy crisis is significantly heating up the inflation situation in Germany.
For the first time in almost 28 years, annual inflation exceeded 4% in September. According to the Federal Statistical Office, consumer prices rose 4.1% over the same month last year. The last time this was observed back in the nineties. For example, in December 1993 the increase was 4.3%. Should we expect further tariff increases?
As noted, in particular, consumers had to pay for energy carriers last month by 14.3% more than a year earlier. Fuel oil also rose in price over the year – by as much as 76.5%. At filling stations, the cost of fuel also increased – by an average of 28.4%. In addition, prices for natural gas (+ 5.7%) and electricity (+ 2.0%) increased. Food products became more expensive by 4.9% (vegetables + 9.2%, dairy products and eggs + 5.5%). Non-food items such as cars, furniture and lighting rose 6.4% in value.
Experts do not rule out that inflation in Europe’s largest economy may reach 5% this year. However, from the point of view of many economists, this is a temporary phenomenon. “After the corona pandemic subsides in the spring and special factors such as the interim VAT cuts subside, inflation in Germany should fall again,” says Jörg Kremer, chief economist at Commerzbank.
At present, experts see no signs of a dangerous upward spiral in wage and price growth. “Until now, it has not been observed that the rate of regulation of wages as a result of inflation exceeded 3%,” economists at BayernLB say.
Germany says this: