The federal government wants to relieve people in times of high inflation with a tank discount and 9-euro ticket. In June, inflation weakened somewhat. However, a quick end to high inflation rates is not in sight.
Despite fuel discounts and 9-euro tickets, inflation in Germany remains at a record level. However, the relief measures introduced at the beginning of the month dampened the rise in prices somewhat in June.
According to the Federal Statistical Office, consumer prices increased by 7.6 percent compared to the same month last year. The authority confirmed a first estimate on Wednesday. In May, the annual inflation rate was still 7.9 percent. It was the highest level in almost 50 years.
Inflation puts many people in need
Above all, price jumps in energy and now also in food are heating up inflation in Europe’s largest economy. Higher inflation rates reduce the purchasing power of consumers because they can afford less for one euro. That’s social explosives. The calls for further relief are getting louder.
“We already have an emergency situation for many people today. Not because there is a shortage – but because prices have exploded, »said DIW President Marcel Fratzscher in the ZDF «Morgenmagazin». “And people with low incomes in particular have to pay 150, 200 euros more a month for food, for energy – especially for gas too.”
The federal government is trying to relieve people, among other things, with the tank discount limited to three months and the 9-euro ticket. According to Fratzscher, however, politicians are not doing enough for people who really need help. “People on Hartz IV who receive a basic pension have no protection mechanism,” said the DIW President. “The people now urgently need money in their pockets, because the situation is not getting better, but rather significantly worse in the coming months.”
Energy prices are through the roof
The foreign trade association BGA also called for relief. “A debate about the excessive tax share of energy costs is overdue,” said association president Dirk Jandura. “It is not only a real burden for the citizens, but for the competitiveness of all companies in Germany.”
Light heating oil cost more than twice as much in June than a year earlier (plus 108.5 percent). Natural gas (plus 60.7 percent) and electricity (plus 22.0 percent) also became significantly more expensive. The rise in fuel prices weakened. Fuel cost 33.2 percent more, in May it was 41.0 percent.
According to the Federal Office, the effects of the tank discount cannot be precisely quantified due to the fluctuating crude oil prices. In purely mathematical terms, the consumer price index would have increased by 8.6 percent in June compared to the same month last year if the prices for fuel and public transport had remained unchanged in June compared to May without relief measures, the authority explained.
Food price inflation accelerated in June to 12.7 percent year-on-year. Prices rose by 11.1 percent in May and by 8.6 percent in April. Edible fats and oils increased in price particularly significantly (plus 43.1 percent). There were also double-digit inflation rates for meat and meat products (up 18.9 percent), dairy products and eggs (+15.3 percent) and bread and cereal products (up 12.5 percent). Excluding energy and food, the annual inflation rate in June would have totaled 3.2 percent.
Compared to May, consumer prices in June increased by a total of 0.1 percent. Here, too, the authority confirmed an initial estimate.
An end to high inflation rates is not in sight for the time being. A look at producer prices for agricultural products also shows this. Although these fell slightly in May compared to the previous month, they rose by 36 percent compared to May 2021. As a rule, increases are passed on to consumers with a time lag.
Inflation rates at the current level have never existed in reunified Germany. In the old federal states there were similarly high values in the winter of 1973/1974. At that time, oil prices rose sharply as a result of the first oil crisis.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
