Wiesbaden (dpa) – Fueled by high energy prices, inflation in Germany has exceeded the four percent mark for the first time in almost 28 years.
Consumer prices rose by 4.1 percent in September compared to the same month last year, as the Federal Statistical Office announced on the basis of a preliminary calculation. The Wiesbaden statisticians last determined a four to the decimal point in December 1993 at 4.3 percent at the time.
Higher inflation weakens the purchasing power of consumers, because they can then buy less for one euro than before. Rising inflation rates are also bitter for savers who, for example, park money in low-interest overnight money accounts. The bottom line is that your balances lose value.
According to preliminary data, consumer prices remained unchanged in September compared to August fueled. In the course of the economic recovery after the Corona crisis, the demand for crude oil has increased significantly, which is driving prices up. In Germany, since January 25 euros per tonne of carbon dioxide (CO2) that is produced when diesel, gasoline, heating oil and natural gas are burned have been due. Both are causing energy prices to rise.
According to preliminary data 14 in September consumers had to pay 3 percent more for household energy and fuels than a year earlier .
The withdrawal of the temporary VAT cut is now having a full impact on inflation. In order to stimulate consumption in the Corona crisis, the federal government had the value added tax limited from July 1 2020 to 31. December 2020 lowered. The regular VAT rates have been in effect again since January 2021, so goods and services are tending to become more expensive again.
Inflation rates of around five percent in Europe’s largest economy are considered possible this year. However, economists see the rise in inflation as a temporary phenomenon. They currently do not see the increased risk of a prolonged or even out of control price spiral. In the coming year, inflation is likely to weaken again Economics Veronika Grimm recently.