Germany’s inflation rate hits a record high of 7.4%, driven by rising food and energy prices


Germany’s inflation rate reached its highest level in more than 40 years in April 2022, according to figures released by the Federal Statistical Office of Germany (Destatis) on May 11.

Annual inflation rose 0.1 percentage points from 7.3% in March to 7.4%, the highest ever inflation rate for the second straight month since the reunification of East and West Germany in 1990, and the fastest consumer rate since 1981. The price has risen.

On a monthly basis, consumer prices rose 0.8% in April and 2.5% in March. Rising energy and food costs contributed most to this increase, according to Destatis.

“Especially since the beginning of the war in Ukraine, energy prices have risen sharply and have had a major impact on inflation,” said Destatis. “A similarly high inflation rate was last recorded on the former territory of the Federal Republic in the fall of 1981, when mineral oil prices also rose sharply as a result of the first Gulf War between Iraq and Iran.”

Destatis said prices have risen further due to additional factors such as delivery bottlenecks due to ongoing supply chain problems caused by the COVID-19 pandemic and “significant price increases early in the economic process.” Said.

Prices for energy products rose 35.3% compared to the same month in April 2022, following a 39.5% rise in March 2022.

Kerosene costs almost doubled in April 2022, but there was also a significant increase in motor fuels and natural gas. Rising prices for other energy products such as solid fuels and electricity have significantly outpaced overall inflation.

Destatis attributed this to multiple factors, including an ongoing conflict in Ukraine and a carbon tax hike from € 25 to € 30 per ton of CO2.

“What was noticeable in April 2022 was the above-average rise in food prices,” said Destatis. “This is where the effects of the war in Ukraine are becoming more and more apparent.”

Food prices rose 8.6% year-on-year in households in April 2022, up from 6.2% in March, and record costs for fats and oils (up 27.3%), meat and meat products (up 11.8%). Did. Dairy products and eggs (up 9.4%), fresh vegetables (up 9.3%).

Destatis says there was also an increase in costs for vehicles and information processing equipment.

The figures released by Destatis show that Joachim Nagel, president of the German central bank Deutsche Bundesbank, expects inflation in Germany to be close to 7% in 2022 on May 11.European Central Bank End the purchase of pure bonds The deposit rate will be raised in June, and the next month, the bank will raise the deposit rate for the first time in more than 10 years.

“The longer the high inflation rate, the greater the risk of the impact of the second round. Monetary policy must act before medium- to long-term inflation expectations show clear signs of unanchoring,” he said.

Catabella Roberts

follow

Katabella Roberts is a reporter currently based in Turkey. She focuses primarily on the United States and covers the news and business of The Epoch Times.

Posted on