Inflation rose again in Germany in August, to 7.9% year-on-year, after a two-month slowdown, still driven by rising energy prices after the war in Ukraine, according to provisional sources published on Tuesday.
The price index gained 0.4 points year-on-year compared to July and returned to its level in May, according to the statistics institute Destatis.
The harmonized price index, which serves as a reference for the European Central Bank, rose 8.8%.
In detail, prices in Germany continue to be buoyed by the ongoing explosion in energy prices, caused by the war in Ukraine, by 35.6% year-on-year in August, compared to 35.7% in July and 38 .0% of June.
Food prices also continue to rise, under the effect of war and drought, to 16.6% in August, after 14.8% in July.
Towards +10% this fall?
The prices of goods increased by 14.7%, that is, 0.8 points more than in July.
This increase ends two months of declines made possible by temporary government measures to reduce household energy bills.
In June, Germany introduced an exceptional fuel tax reduction and a €9 per month ticket valid on all public transport except high-speed lines.
Most of these measures will end in September.
And in October a tax on gas intended to prevent the bankruptcy of German energy groups is due to come into effect.
Result: experts fear a new price explosion this fall.
Bundesbank President Joachim Nagel said he expects “a possible 10% inflation during the autumn months”, a first since the 1950s.
The price increase in August “is just the beginning of an inflationary autumn”, Mr. Voelkler abounds.
Source: BFM TV
