Inflation in Germany rises to 10.4 percent in October Steinmeier agrees with Germany on “hard years” and renunciation

Inflation in Germany is rising and rising. According to economists, consumers cannot hope for a quick price easing for the time being.

High energy and food prices pushed inflation in Germany above 10 percent in October. Consumer prices rose 10.4 percent compared to the same month last year, the Federal Statistical Office in Wiesbaden announced Friday based on preliminary data.

In September an inflation rate of 10.0 percent was recorded. It was the highest value in about 70 years. According to economists, people will have to adapt to an otherwise high inflation for the time being.

Lower purchasing power

High inflation rates reduce the purchasing power of consumers, who can afford one euro less. This could dampen private consumption as an important pillar of the economy. Consumers had to pay 43.0 percent more for energy in October than a year earlier. Food prices rose by 20.3 percent.

A rapid easing of inflation is not in sight for the time being. According to the Ifo Institute, people must continue to adapt to significantly higher prices when buying groceries.

About 97 percent of the grocers surveyed wanted to ask for more. “The inflation wave has not yet broken,” said Ifo economic head Timo Wollmershäuser. “The high energy costs in particular have not yet been fully passed on to the consumer.”

wholesale prices for gas

According to the German Economy Minister, Robert Habeck, the recent drop in wholesale gas prices will only reach citizens and businesses with some delay.

According to preliminary data, consumer prices in Europe’s largest economy rose 0.9 percent in October compared to September.

The German federal government wants to support consumers and companies with a protective shield of up to 200 billion euros due to the sharp rise in energy prices. A gas and electricity price brake should also be financed from this.

However, details about the planned energy price cuts are not yet known. So far, the German federal government has initiated a one-off payment: the gas advances will be taken over in December.

In reunified Germany, inflation rates at present levels have never existed. In the old federal states, rates of 10 percent and more were measured in the early 1950s, but the method of calculation has changed over time. (sda/awp/dpa)