Inflation in Germany is increasing significantly.
Economists had expected the increase in July and give consumers some hope: The price jump should be temporary.
Wiesbaden - Inflation in Germany increased significantly in July.
Consumer prices were 3.8 percent above the level of the same month last year, as the Federal Statistical Office announced on Thursday based on a preliminary calculation.
This means that the annual inflation rate in Europe's largest economy is above the three percent mark for the first time since August 2008.
During the financial and economic crisis at the time, inflation had repeatedly exceeded three percent.
After the slight decline in inflation to 2.3 percent in May of the current year, the trend was reversed again.
From June to July 2021, consumer prices increased by 0.9 percent according to calculations by the Wiesbaden authority.
Inflation: Above-average increase in energy prices
Economists expect further price jumps in the coming months. A weighty reason is the return of VAT to its old rates: In the second half of 2020, the federal government temporarily lowered VAT to 16 or 5 percent in order to stimulate consumption during the Corona crisis. Since January 1, 2021, the usual VAT rates of 19 and 7 percent have been in effect again in Germany. Goods and services are therefore tending to become expensive again.
In addition, energy prices have been rising at an above-average rate for months. A year ago, with the outbreak of the Corona crisis, crude oil prices collapsed due to low demand on the world market. They have since recovered. In addition, since January 25 euros per tonne of carbon dioxide (CO2) has been due in Germany, which is produced when diesel, gasoline, heating oil and natural gas are burned.
(dpa)
