Following a year that saw rapeseed oil become like gold dust and the 9-euro ticket attempt to cushion the blow of explosive summer petrol costs, the German Federal Statistical Office has announced that 2022 saw inflation rates in Germany break historical records.
Many will be unsurprised that 2022 inflation rates in Germany have now officially broken the country’s historical records. In a report newly published by the German Federal Statistical Office (Destatis), retail costs are said to have risen by an average of 7,9 percent last year. In 2021, before Putin’s invasion of Ukraine, the average rate lay at 3,1 percent.
“These historically high annual inflation rates were mainly driven by extreme price rises for energy and food since the beginning of the war in Ukraine,” said statistical office president Ruth Brand in a press release. Such highs have not been seen since German reunification in 1989, the previous record 7,6 percent being set by West Germany in 1951.
The cost of food and rent were among the biggest changes to affect the everyday lives of people in Germany. In December, the cost of supermarket shopping increased by 20,7 percent and the cost of so-called cold rent - which doesn’t include utility bills - rose by 1,9 percent.
Though still high, towards the end of the year Germany’s inflation rates did begin to lower. And despite the record-breaking 2022 levels, experts predict that rates will further ease in the coming year. The Institute for Global Economics (IfW) is suggesting an average rate of 5,4 percent for 2023
The price of gas and energy is expected to lead the way when it comes to abating inflation rates. With the cost of energy in Germany now returning to pre-war levels, 2023 should weigh a little lighter on the shoulders of Germany’s consumers.
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