Inflation in Germany rose again to 7,9 percent in August 2022
After dropping slightly in June and July as a result of government interventions, the inflation rate in Germany rose once again in August 2022, nearing the 8-percent mark.
Inflation hits 7,9 percent in Germany in August 2022
The news comes after two slightly more relaxed months: with the government’s 9-euro ticket and the tax cut on fuel both slowing down price development in Germany, the inflation rate fell to 7,6 percent in June and 7,5 percent in July. However, since both measures expired at the end of August, inflation has since taken off again.
Experts expect consumer prices to continue to rise in the coming months, and are not ruling out the possibility of price growth even hitting the double digits. The inflation rate has remained well above 7 percent for the past six months.
Price of food and energy rising particularly quickly
“Price increases for energy products and food continue to be the main causes of high inflation,” Dr Georg Thiel, president of the Federal Statistical Office, wrote in a press release. “Two measures in the relief package in particular had a slightly dampening effect on overall inflation from June to August 2022: the 9-euro ticket and the fuel discount.”
In August 2022, prices for energy products were up 35,6 percent compared to August 2021. The price of light heating oil has more than doubled in the past year, posting an increase of 111,5 percent, while natural gas prices are up 83,8 percent year-on-year. Food prices rose by 16,6 percent between August 2021 and August 2022, with edible oils and fats (+44,5 percent) and dairy products (+26,8 percent) becoming significantly more expensive.
The fact that inflation is being largely fuelled by these two products alone is clear in Destatis’ calculations: when energy prices are discounted, the overall inflation rate falls to 4,7 percent, and if food prices are also excluded, it was 3,5 percent in August 2022 and therefore not even half as high as the overall inflation rate.