Inflation in Germany is at its highest level in nearly 50 years. Strong price increases for energy and food are responsible for this.
In May, consumer prices were 7.9 percent higher than the same month last year, as calculated by the Federal Statistical Office. Inflation in Europe’s largest economy thus remained above seven percent for the third month in a row. Inflation rose to 7.3 percent in March and 7.4 percent in April. From April to May, prices rose by 0.9 percent.
Ukraine war as price driver
As a result of the Russian attack on Ukraine, energy prices had risen sharply from high levels in recent months. Russia is a major supplier of oil and gas. However, it is not only the tense situation in the world market that is driving energy prices, but also the German CO₂ tax: since the beginning of the year, EUR 30 per tonne of carbon dioxide has been produced when diesel, petrol, heating oil and natural gas are burned. .
Natural gas became more than half the price
In May, people in Germany had to pay 38.3 percent more for energy than a year ago. Heating oil was almost twice as expensive as in May 2021. Natural gas became more than half the price. Prices for fuel (41 percent) and electricity (21.5 percent) also rose sharply.
Price increase due to delivery bottlenecks
Delivery bottlenecks also cause the prices of many goods to rise. Food prices rose by 11.1 percent. This means that prices have risen sharply again after 8.6 percent in April. The prices of goods as a whole rose 13.6 percent in May compared to the same month last year. There are “price increases in almost all areas,” the statisticians note. The federal government is trying to relieve people, among other things, with a limited fuel discount. Measures against inflation are also being taken in Austria – the government has put together a multi-billion dollar aid package.
In the short term, there is no relief in sight. According to Federal Bureau calculations, wholesale prices, which affect consumer prices, were 22.9 percent higher in May than a year earlier. Although the increase was somewhat weaker than in April 2022, wholesale prices rose by one percent from April to May this year.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
