Analysts have predicted that without any further action, inflation in Europe’s largest economy could reach double digits by the end of 2022.
Inflation in Germany in August rose to its highest level in nearly 50 years, surpassing the maximum set three months ago. This was reported by Reuters.
Consumer prices, consistent with other European Union inflation data (HICP), rose 8.8% year-on-year after an unexpected increase of 8.5% in July, the federal statistical office said.
Inflation in Germany rose to 8.7% in May, the first time since the winter of 1973/1974, when the first oil crisis led to a new inflationary cycle.
Rising energy prices as a result of the war in Ukraine have been the main driver of higher inflation. Energy prices in August were 35.6% higher than the same month last year.
The increase comes despite government measures to curb inflation, including cheaper public transport tickets and a cut in fuel tax that ends on August 31.
Analysts have predicted that without any further action, inflation in Europe’s largest economy could reach double digits by the end of 2022.
The data adds to the arguments for the European Central Bank to go for a bigger interest rate hike next month.
Recall that in Germany electricity prices for the first time in history rose to 700 euros per MWh. This price level is approximately 14 times higher than the seasonal average over the past five years.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.