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Gas station: Towards five percent in the coming months
Photo: Sven Hoppe / dpa
Inflation in Germany has climbed to its highest level in almost 28 years.
Goods and services were on average 3.9 percent more expensive in August than in the same month last year, as the Federal Statistical Office announced on Monday for its first estimate.
The last time there was a stronger rise in prices was in the period after German reunification - in December 1993 at 4.3 percent at the time.
Economists had expected a figure of 3.9 percent, after an inflation rate of 3.8 percent in July.
Experts estimate that the inflation rate is likely to rise towards five percent in the coming months and not decline noticeably again in 2022.
The current high inflation is partly the result of a statistical effect.
In the past year, many goods were extremely cheap due to the corona crisis.
In order to stimulate consumption, the federal government had also reduced VAT for a limited period from July 1, 2020 to December 31, 2020.
The regular VAT rates have been in effect again since January 2021, so goods and services tend to be expensive again.
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