BERLIN (ABCNews247) — Germany’s annual inflation rate rose to 7.9% in August, returning to its highest level in nearly half a century after falling in the previous two months, according to official data
Inflation in Europe’s largest economy hit 7.9% for the first time in May – the highest rate since the winter of 1973-1974, when prices were fueled by an oil crisis – before falling to 7.5% in July. The preliminary figure, which the Federal Statistical Office reported Tuesday, is mostly unchanged in a final report about two weeks later.
As in other countries around the world, inflation in Germany has been fueled by the Russian war in Ukraine, which has led to a rise in energy costs and food prices.
The statistics agency said energy prices rose 35.6% year-on-year in August and food prices rose 16.6%, while the effects of the supply chain disruption caused by the coronavirus pandemic were still being felt.
At the beginning of June, Germany temporarily lowered excise duties on diesel and petrol and introduced an ultra-cheap ticket that allows people to use all local and regional public transport for 9 euros (dollars) per month. Both measures expire on Wednesday.
Germany’s central bank, the Bundesbank, said in its monthly report last week that “inflation could rise to around 10% in the fall”, though noting that the inflation outlook is “extremely uncertain”.
