Inflation in Germany for the second month in a row reaches a new high
In April, inflation in Germany reached its highest level in 40 years, as the war in Ukraine further contributed to rising prices for energy and food, in particular. According to the Federal Statistical Office (Destatis), in April 2022, goods and services in Germany were on average 7.4 percent more expensive than a year earlier. This is the highest figure since the fall of 1981, when oil prices soared as a result of the First Gulf War.
“Inflation has reached a new high in a united Germany for the second month in a row,” said Georg Till, president of Destatis. У March, a 40-year high inflation rate of 7.3 percent was achieved.
Current forecasts show that further price increases are still ahead. According to a survey by the Ifo Institute, based in Mr. Munichthe vast majority of locals and international companies in Germany plan to raise prices over the next three months. Thus, the head of Ifo economy Timo Volmerheuser concluded that inflation is unlikely to fall below 7 percent in the coming months.
Prices for energy and food are rising especially fast
The war in Ukraine is still a major factor in the rapid rise in prices, with the cost of energy and raw materials rising particularly sharply. In April 2022, energy resources were 35.3 percent more expensive than a year earlier, with light fuel oil and fuel oil prices rising by almost 100 percent and electricity prices by 19.3 percent.
Food will also become significantly more expensive, and statisticians note that in this area “the effects of the war in Ukraine are becoming more noticeable.” Edible fats and oils (prices by 27.3%), meat products (+11.8%), dairy products and eggs (+9.4%) and fresh vegetables (+9.3%) suffered the most. .
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