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Price shock: inflation rate rises to its highest level in 28 years

2021-10-13T07:39:38.256Z


Rising energy prices are further fueling inflation in Germany. For the first time in almost 28 years, the annual rate of inflation exceeded the four percent mark in September.


Rising energy prices are further fueling inflation in Germany.

For the first time in almost 28 years, the annual rate of inflation exceeded the four percent mark in September.

Wiesbaden - Consumer prices climbed 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.

A four before the decimal point was last determined in December 1993 at 4.3 percent.

Consumer prices remained unchanged in September compared with August.

Energy prices are skyrocketing

For energy in particular, consumers had to dig significantly more in their pockets in September 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. For some time now, inflation has been fueled by rising energy prices. Global demand is high in view of the economic recovery after the slump in the Corona crisis.



Essential for the increase in energy prices “were base effects, since we are comparing the current prices with the very low prices of the previous year. The CO2 tax introduced at the beginning of the year also increases the rate of price increases for energy products, ”explained the statisticians.

In Germany, 25 euros per tonne of carbon dioxide has been due since January, which is produced when diesel, gasoline, heating oil and natural gas are burned.

Food prices also rose at an above-average rate of 4.9 percent in September.

The withdrawal of the VAT reduction is noticeable

In the meantime, the withdrawal of the temporary VAT cut in the second half of 2020 is also having an impact.

The normal VAT rates have been in effect again since January.

Goods and services therefore tend to become more expensive.

Higher inflation weakens the purchasing power of consumers because they can then buy less for one euro than before.

(dpa / ph)

Source: merkur

All news articles on 2021-10-13

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