Berlin, December 11, : .Germany’s inflation continued to climb, rising from 4.5 percent in October to 5.2 percent in November.This is the highest recorded rate in Germany since June 1992 according to the Federal Statistical Office, Destatis.
“The inflation rate increased for the sixth time in a row and in November reached the highest level recorded in 2021 so far,” said Georg Thiel, president of Destatis.
Price development in recent months was driven by “base effects due to low prices in 2020”, Destatis noted.
A temporary decrease in value added tax (VAT), and a sharp fall in the prices of mineral oil products last year, had an “upward impact on the overall inflation rate”.
Energy prices in Germany in November were up 22.1 per cent year-on-year.
“The rate of price increase regarding energy was up for the fifth month in a row,” Destatis noted.
Heating oil prices rose by the most and have doubled since last year.Fuel prices have risen 43.2 percent.
The introduction of a CO2 pricing in the transport and housing sectors at the beginning of the year, with a charge of 25 euros ($28) per tonne of carbon dioxide emitted, further fuelled inflation in Germany, according to Destatis.
Prices of goods in Germany increased above-average with 7.9 per cent in November, according to Destatis.Net rents, which were “important as they account for a large part of household consumption expenditure”, rose by only 1.4 per cent and had a downward effect on overall inflation.
The German Council of Economic Experts, an advisory body of the German government, presented its annual report.It noted that “sharp increases in global demand have led to high commodity prices and shortages.”
GCEE expects an inflation rate in Germany of 3.1 per cent for the entire year 2021 and 2.6 per cent for 2022.
“Longer-lasting supply shortages, higher wage settlements and rising energy prices pose a risk that the temporary factors that are driving up prices may lead to persistently higher inflation rates.”
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