Prices in Germany increased enormously in August 2021 compared to the same month last year.
It is the largest inflation in nearly three decades.
Two reasons are essential.
Berlin / Munich - Not easy times for German consumers' wallets: In August 2021, prices in Germany rose more sharply than they have been in almost three decades: the inflation rate was 3.9 percent, the Federal Statistical Office said on Friday. The last time there was an even higher inflation rate compared to the same month of the previous year was in December 1993, with an increase of 4.3 percent.
However, the development currently seems to have at least stopped: According to the evaluation, consumer prices have not changed compared to the previous month of July.
In addition to other factors, the reason for the significant price increase is also special effects in the wake of the Corona crisis.
This of course includes the so-called base effect due to the corona-related lowering of the VAT rates in July 2020. This had already caused the inflation rate to jump to 3.8 percent in July 2021 compared to the previous year, since the VAT rates for almost all goods and services have been at the same level since the beginning of the year previous level.
The German economy is now doing better, but the national budget is deeply in the red.
Inflation in Germany: Two reasons are decisive for the higher prices
The return to higher VAT is largely responsible for the strong inflation. In addition, there was a temporary drop in the price of mineral oil products in the Corona year 2020, which is now increasing overall inflation compared to the previous year. In the energy sector in particular, however, prices have increased dramatically. Added to this is the introduction of the CO2 tax since January 2021, which makes energy products more expensive.
The Federal Statistical Office also referred to "crisis-related effects, such as the significant price increases on the upstream economic levels".
In view of delivery bottlenecks, there had recently been significant price increases across various branches of industry in the procurement of materials.
So far, however, these effects have "only partially and weaker reflected in the consumer price index", explained Christoph-Martin Mai, head of the "Consumer Prices" department at the Federal Statistical Office.
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Inflation in Germany, price shock at petrol stations: the cost of living has risen noticeably recently.
© Michael Gstettenbauer / Imago
Inflation in Germany: VAT cut as the main reason - There are exceptions
The prices for goods as a whole rose by an above-average 5.6 percent from August 2020 to August 2021.
Above all, the prices for energy products were up 12.6 percent, well above overall inflation.
Allegedly, the fuel price could even rise massively in the near future, to over two euros *.
Food prices rose by 4.6 percent in August compared to the same month last year, after 4.3 percent in July 2021. Vegetables (plus 9.0 percent) as well as dairy products and eggs (plus 5.0 percent) were more expensive than in August 2020 ).
In addition, consumer goods such as vehicles (plus 5.5 percent) or furniture and lights (plus 4.0 percent) also rose significantly.
In contrast, according to the Federal Office, only a few goods became cheaper - for example televisions (minus 0.7 percent).
Compared to July 2021, consumer prices remained stable in August.
The prices for energy products as a whole increased only slightly by 0.4 percent.
According to the statisticians, the price increases for fuels (plus 0.9 percent) contrasted with decreases for heating oil (minus 1.7 percent).
German households have to pay more for electricity than in any other EU country.
This is due to high taxes.
But there is hardly any improvement in sight.
(PF / dpa) * Merkur.de is part of the IPPEN.MEDIA offer
List of rubric lists: © Michael Gstettenbauer / Imago