As per the recent reports, the annual consumer inflation rate of Germany went up to 7.9% in August as compared to market forecasts. This was the highest Inflation Rate Germany has ever witnessed since reunification in the 1990s. This is due to the impact of the ongoing energy crisis and covid-19 supply chain shortage on households’ finances Initially, the country’s analysts and economists made a market forecast that it will go up to 7.8 in August. However, it proved everybody wrong and made a higher leap this time.
When this inflation rate was first read in July, it was estimated at 7.5% but took such a big leap in a single month. It may be due to the increase in the prices of energy products and food. Power rates rose 35.6% year-on-year in August, barely shorter than July’s 35.7%.
Household energy costs were up 46.4% as heating oil prices more than doubled with a 111.5% annual rise and natural gas prices climbed 83.8%.
Germany discovered a €65 billion ($64.7 billion) inflation relief package last week to enable households to cope with spiraling inflation and energy bills, the outcomes of Russia’s war on Ukraine, and the resulting penalties assessed on Moscow.
The boost in food prices hastened for the sixth successive month with a 16.6% annual jump in August, as per the German statistical office Destatis.
Every month, Germany’s prospect prices index improved by 0.3% in August.
|Inflation Rate||7.90||7.50||percent||Aug 2022|
|Inflation Rate MoM||0.30||0.90||percent||Aug 2022|
|Harmonized Consumer Prices||119.50||119.00||points||Aug 2022|
|Consumer Price Index CPI||118.80||118.40||points||Aug 2022|
|Core Inflation Rate||3.18||3.21||percent||Jul 2022|
|Core Consumer Prices||113.40||112.40||points||Jul 2022|
|Producer Prices||156.30||148.40||points||Jul 2022|
|Producer Prices Change||37.20||32.70||percent||Jul 2022|
|Export Prices||126.00||123.50||points||Jul 2022|
|Import Prices||142.90||140.90||points||Jul 2022|
|Food Inflation||16.60||14.80||percent||Aug 2022|
|Producer Price Inflation MoM||5.30||0.60||percent||Jul 2022|
|CPI Transportation||119.30||120.60||points||Aug 2022|
|CPI Housing Utilities||120.40||119.50||points||Aug 2022|
|Wholesale Prices||136.30||136.80||points||Jul 2022|
George Thiel POV on the Disastrous Inflation Rate Situation?
“Two measures of the relief package had a slight downward effect on the overall inflation rate especially from June to August 2022: the 9-euro ticket and the fuel discount,” said Georg Thiel, president of Destatis.