Inflation in Germany continued to rise and rose from 4.5% in October to 5.2% in November, the highest rate recorded in the country since June 1992, the Federal Statistical Office said. (Destatis).

“The inflation rate has increased for the sixth time in a row and in November reached the highest level recorded in 2021 to date,” said Georg Thiel, President of Destatis.

Price developments in recent months have been driven by “base effects due to low prices in 2020,” Destatis noted.

The temporary reduction in the value added tax (VAT) and the sharp drop in the prices of petroleum products last year have had an “upward effect on the headline inflation rate”.

Energy prices in Germany in November rose 22.1% year-on-year.

“The rate of increase in energy prices is up for the fifth consecutive month,” Destatis noted.

Heating oil prices increased the most strongly and doubled from a year ago, while fuel prices climbed 43.2 percent.

The introduction of CO2 pricing in the transport and housing sectors at the start of the year, with a fee of 25 euros ($ 28) per tonne of carbon dioxide emitted, further fueled inflation in Germany, according to Destatis.

The prices of goods in Germany rose above average with 7.9% in November, according to Destatis. Net rents, “important because they represent a large share of household consumption expenditure”, rose only 1.4 percent and had a downward effect on headline inflation.

In presenting its annual report, the German Council of Economic Experts (GCEE), an official advisory body to the German government, noted that “the sharp increase in global demand has resulted in high prices for raw materials and energy and supply shortages “.

The GCEE expects an inflation rate in Germany of 3.1% for the whole of 2021 and 2.6% for 2022.

“Longer lasting supply shortages, higher wage deals and rising energy prices pose the risk that temporary factors that push prices up will lead to ever higher inflation rates. “

–IANS

ksk /

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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