Effects caused by the crisis, such as delivery bottlenecks and significant increases in energy prices, continue to ensure a high rate of inflation.
Inflation in Germany fell below the 5 percent mark at the beginning of the new year. In January, the inflation rate was 4.9 percent, as the Federal Statistical Office announced on Monday in an initial estimate.
However, analysts had expected a significantly lower increase in consumer prices compared to the same month last year of 4.4 percent. In December, the inflation rate was still 5.3 percent.
Higher inflation weakens the purchasing power of consumers because they can then buy less for one euro than before. Higher inflation is also gnawing at savings that bear meager interest.
Inflation in Europe’s largest economy was again fueled primarily by higher energy prices. On average, consumers had to pay 20.5 percent more for household energy and fuel in January than a year earlier.
On the other hand, there was no effect from the reversal of the temporary reduction in value added tax, which had also fueled consumer prices last year. Nevertheless, the inflation rate remains high, the Wiesbaden authorities said. Crisis-related effects such as delivery bottlenecks and significant increases in energy prices would continue to have an impact. In view of this development, many economists are not expecting any quick, thorough relaxation on the price front.
According to the first estimate, consumer prices rose by 0.4 percent compared to December.
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.
