Frankfurt, Feb. 9, (dpa/GNA) - Inflation in Germany remains high, with consumer prices rising by 8.7% in January compared to the same month last year, the Federal Statistical Office announced in a first estimate on Thursday.
According to earlier data, the annual inflation rate was 8.6% in December and 10% in November. The figures are subject to revision, with the final results for January due to be released on February 22.
Higher prices for energy and food have been driving inflation in Germany for months. Higher inflation rates reduce the purchasing power of consumers. That can put a strain on consumption, which is an important pillar of the economy.
Economists currently do not expect any significant easing of consumer prices in the current year. “It would be dangerous to think that we are already through and that the inflation problem is settled,” Bundesbank president Joachim Nagel recently told the financial markets newspaper Börsen-Zeitung.
The German government expects an average inflation rate of 6% for the current year in Europe’s largest economy. The brakes on electricity and gas prices should have a dampening effect, but the state will not be able to cushion all the consequences.
“The real loss of income and purchasing power associated with the high price increases will weigh on domestic economic development despite the relieving effects of the extensive government support measures,” the government’s latest annual economic report stated. Private consumption in particular is likely to decline noticeably.
Last year, the inflation rate reached an average of 7.9%. That is the highest level since the founding of the Federal Republic of Germany, though the calculation method has been changed over time. In 2021, consumer prices increased by 3.1% compared with the previous year.
GNA