Thursday, October 28, 2021
Highest rate in 28 years
Consumer prices rise significantly
Once again, high energy prices are causing the cost of living in Germany to rise. The statisticians again determine an inflation rate of well over four percent for October – with an upward trend.
Consumers also had to dig deeper into the cost of living in October. Over the year, the price increase was 4.5 percent, as reported by the Federal Statistical Office. That is the highest level in 28 years. Compared to the previous month, the sample shopping cart was 0.5 percent more expensive. The Wiesbaden authority last measured an inflation rate of 4.5 percent in October 1993. In September inflation had already passed the four percent mark at 4.1 percent.
Higher inflation weakens the purchasing power of consumers because they can then buy less for one euro than before. According to preliminary data, people in Germany had to dig deep into their pockets in October for energy, which rose by 18.6 percent within a year.
Rising energy prices have been fueling inflation for some time. In addition, the withdrawal of the temporary VAT cut is now having a full impact. The regular VAT rates have been in effect again since January 2021, so goods and services are tending to become more expensive again. In addition, there are material shortages and delivery bottlenecks as well as the introduction of the CO2 tax. Since the beginning of the year, 25 euros per tonne of carbon dioxide that is created when diesel, gasoline, heating oil and natural gas are burned are due.