Weak inflation is not yet a reason for economists to make it quite obvious. A significant decline is not expected until next year.
Despite the slowdown in November, inflation in Germany remains at a high level. According to preliminary data from the Federal Statistical Office, consumer prices increased by 10.0% compared to November 2021. The Wiesbaden authority will announce the details on Tuesday. The inflation rate in October reached 10.4 percent, the highest level in nearly 70 years.
Economists see no reason to announce a slowdown in November. Many economists don’t expect inflation to fall significantly until the spring. on average in 2023 Federal Bank-president Joachim Nagel An inflation rate of about 7 percent in Germany, “maybe higher,” he recently told the Phoenix TV station.
Inflation has been driven by higher energy and food prices for months. High rates of inflation reduce the purchasing power of consumers and dampen income growth. People can afford less for one euro.
Unprecedented inflation rates in Germany
The German government wants to ease the burden on consumers and businesses caused by soaring energy prices with relief packages worth billions. This also includes brakes on gas and electricity prices planned for next year. In December, there is a one-time emergency aid for gas and heating customers. You don’t have to pay an advance this month. The federal government bears the costs.
Inflation rates at the current level did not exist in united Germany. In the old federal states, rates of about 10 percent and above were measured in the early 1950s. However, the method of calculation has changed over time.
(APA / DPA)
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