German inflation back at near-half-century record after dip
Aug 29, 2022, 5:43 PM | Updated: Aug 30, 2022, 5:44 am
BERLIN (AP) — Germany’s annual inflation rate rose to 7.9% in August, returning to its highest level in nearly half a century after it dipped in the two previous months, according to official data
Inflation in Europe’s biggest economy first hit 7.9% in May — the highest rate since the winter of 1973-1974, when prices were fueled by an oil crisis — before slipping back to 7.5% by July. The preliminary figure, which the Federal Statistical Office reported Tuesday, is usually unchanged in a final report about two weeks later.
As in other countries around the world, inflation in Germany has been stoked by Russia’s war in Ukraine, which has led to a rise in energy costs and food prices.
The statistics office said energy prices were up 35.6% on the year in August and food prices rose 16.6%, while the effects of disruption to supply chains caused by the coronavirus pandemic were still being felt.
Germany temporarily lowered taxes on diesel fuel and gasoline at the start of June and introduced an ultra-cheap ticket that allows people to use all local and regional public transportation for 9 euros (dollars) a month. Both of those measures are due to expire on Wednesday.
Germany’s central bank, the Bundesbank, said in its monthly report last week that “the inflation rate could climb up to around 10% in the autumn,” though it noted that the inflation outlook is “extremely uncertain.”
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