In September, Germany recorded a sharp increase in inflation and, according to preliminary estimates, its level is around 10 percent. – informed the Federal Statistical Office. This is the highest inflation rate in the country since the early 1950s.
Consumer prices were down 10 percent in September. higher than in September 2021. In August, the inflation rate was 7.9 percent.
“Inflation rates have not been at their current levels since German reunification. In the federal states in the early 1950s, they amounted to 10%. and more, but calculation methods have changed over time“- informs the portal RedaktionsNetzwerk Deutschland (RND).
Higher inflation reduces the purchasing power of consumers and reduces their financial freedom. A survey by the German Retail Trade Association (HDE) shows that 60 percent consumers are already limited when shopping. In the coming months, the vast majority (76%) of respondents are preparing for more economical purchases.
Many households are now forced to spend much more money on energy or to save on much higher heating bills. Consequently, they need to save on other expenses, such as purchases explained Rolf Buerkl, an expert from the research company GfK. This has consequences for Europe’s largest economy, as private consumption is a significant pillar of the economy – added the expert.
Energy and food have been the biggest price drivers for months. The Russian attack on Ukraine and supply bottlenecks exacerbated the already difficult situation. In September, energy cost 43.9 percent. more than a year earlier, in turn, food prices increased by 18.7 percent.
German consumers received some relief from the government-introduced fuel discount, as well as a € 9 ticket for local public transport, but both expired at the end of August.
The German government has announced further aid, e.g. retirees and students are to receive a one-off lump sum towards energy prices. Child benefit is to be increased at the beginning of the year. In addition, the federal government wants to restrict gas prices.