Inflation passes the four percent mark

Wiesbaden (dpa) – For the first time in almost 28 years, inflation in Germany has passed the four percent mark again.

Fueled before Above all from higher energy costs, consumer prices rose by 4.1 percent in September compared to the same month last year, as the Federal Statistical Office announced on Wednesday. The Wiesbaden authority confirmed preliminary data. According to estimates by many economists, inflation is likely to weaken again in the course of the coming year, also because special effects as a result of the Corona crisis will no longer apply.

The last four to the decimal point in the rate of inflation was in December 1993 was determined with 4.3 percent. Compared to August, consumer prices remained unchanged in September. Higher inflation weakens the purchasing power of consumers because they can then buy less for one euro than before.

Consumers had to dig much deeper into their pockets in September in particular for energy than a year earlier ( plus 14, 3 percent). Heating oil rose in price by 76, 5 percent within a year. Fuel cost 28, 4 percent more. The prices for natural gas (plus 5.7 percent) and electricity (plus 2.0 percent) also rose. Food prices rose by an above-average 4.9 percent.

The rise in prices has been fueled by energy prices for some time. Global demand for crude oil, among other things, is high in view of the economic recovery after the collapse of the Corona crisis. In Germany, since the beginning of the year 25 euros per tonne of carbon dioxide that is generated when burning diesel, gasoline, heating oil and natural gas have been due.

In addition, there are special effects like the withdrawal of the temporary VAT cut in the second half of the year 2020, which is now fully reflected in inflation. The regular VAT rates have been in effect again since January. Goods and services are therefore tending to become more expensive.

Experts: Temporary phenomenon

For the time being, many economists see the rise in inflation as a temporary phenomenon that is likely to continue for a few more months. According to estimates by the International Monetary Fund, inflation is likely to fall to pre-pandemic levels for most of the world by the middle 2022.

Inflation is an important gauge for monetary policy the European Central Bank. The central bank is aiming for an annual inflation rate of 2 percent for the currency area of ​​the 19 countries and is at least temporarily ready to accept a moderate increase or decrease in this mark. From the perspective of the central bank, too, the current increase is temporary.

In the euro area, consumer prices rose by 3.4 percent in September compared to the same month last year. The rate of inflation was last higher in September 2008. The harmonized consumer price index HICP, which the ECB uses for its monetary policy, was 4.1 percent above the September level 2020 in Germany.

Related Articles

Back to top button