German inflation peaks after reunification — RT Business News

Annual inflation in Germany continued to rise in double digits, accelerating to 10.9% in September, final data from the Federal Statistical Office (Destatis) showed on Thursday.

According to the agency’s press release, the figure rose by 8.8% in August (on a harmonized basis for the EU). By German standards, consumer prices rose 10.0% year-on-year, in line with market expectations.

The inflation rate has reached « an absolute record since German reunification », Destatis chairman Georg Thiel said, quoting « huge price increases » energy products, as well as food costs, as the main reasons for the high inflation.

The end of the fuel discount period and the availability of €9 tickets also accelerated the price increase in September, he said. « These temporary measures of the second relief package had a downward effect on headline inflation from June to August 2022. »

The report indicates that consumer prices in September rose sharply by 1.9% compared to the previous month. It also showed that energy product prices rose 43.9% year-on-year despite relief measures. There has been a particularly large increase in household energy prices, he noted. Fuel oil prices more than doubled, while natural gas prices jumped 95.1%.

Last month, the German government agreed to a 200 billion euro ($194 billion) package to « cushioning rising energy costs and the most serious consequences for consumers and businesses. » Under the plan, which will be financed by new borrowing, Berlin will introduce an emergency brake on gas and electricity prices. It will also remove a planned gas tax for consumers to avoid further price increases.

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