According to the final reading, the German consumer price index in September increased by 10. 0 percent, compared to the same month last year, which is the highest in about 70 years.
The German consumer price index climbed by 1.9% on a monthly basis in September compared to a 0.3% increase in August.
Economic experts anticipate that the inflation rate will approach a two-digit figure in the upcoming months, and the final reading of the annual and monthly inflation statistics is consistent with “Reuters”‘ predictions.
The “coordinated” inflation rate in Germany jumped to 10. 9 percent last September on an annual basis, in line with expectations, and a number in the category of dozens for the first time since the founding of the eurozone more than 20 years ago.
Since all of the member states of the European Union utilise the same inflation account methodology, the Consumer Prices (HICP) is used to gauge inflation in the euro area.
After the conveyance of transport tickets and fuel tax expired at the end of August, energy expenses increased by 43.9% compared to September of previous year, which is what caused the inflation spike.
The German government had anticipated a 0 for its economy.
In view of the terrible energy crisis the nation is currently experiencing, figures released on Wednesday indicated that inflation will rise to 4% over the following year and reach 7% in 2023.
Germany suffers from an energy crisis due to the decline in gas supply from Russia after the outbreak of the Ukraine crisis last February, which resulted in an increase in energy prices with the largest economy in Europe.
The four biggest economic institutes in Germany predict that the economy would contract by roughly 0.4% next year, after increasing by 3.1% as anticipated.
The German economy “will not be able to escape entering the slump,” according to a report by the Evo, “RWA,” “IWH,” and “AFW” economic institutes, because of the significant increase in energy material prices.
Institutes expected that the German economy grows is limited this year to 1.
4% in comparison to the prior year.
It is noteworthy that high inflation rates reduce the purchasing power of consumers and weaken people’s financial ability..
Germany’s inflation rate has increased to its highest level in 70 years.
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