German annual inflation rate hits highest level since 1993

A customer selects shoes on sale outside a shoe store in Berlin, capital of Germany, Jan. 19, 2022. Germany’s annual inflation rate hit 3.1 percent in 2021, the highest level since 1993, the Federal Statistical Office (Destatis) announced on Wednesday. . (Photo by Stefan Zeitz/Xinhua)

BERLIN, Jan. 19 (Xinhua) — Germany’s annual inflation rate hit 3.1 percent in 2021, its highest level since 1993, the Federal Statistical Office (Destatis) said on Wednesday.

Annual inflation was mainly driven by high monthly rates in the second half of 2021, peaking at 5.3% in December 2021, according to Destatis.

The temporary reduction in Value Added Tax (VAT) and the sharp decline in petroleum products in the first year of the COVID-19 crisis had a strong upward effect on the headline inflation rate in 2021 , he noted.

“In addition to the temporary base effects of the past, there are increasingly crisis-related effects such as bottlenecks in deliveries and sharp price increases at the upstream stages of the economic process,” he said. said Georg Thiel, president of Destatis.

After falling 4.8% in 2020, prices for energy products rose sharply by 10.4% in 2021 year-on-year, according to Destatis. Motor fuel prices and heating oil prices increased by 22.6% and 41.8%, respectively. The CO2 charge introduced at the start of 2021 also had an upward effect on prices.

German consumers and businesses “should prepare for further price increases,” the ifo institute said on Wednesday. In December, the price expectations index fell only slightly to 44.6 points, after an all-time high of 44.9 points in November, according to an ifo survey of companies.

“Companies are passing on the rising cost of energy and the supply of intermediate products and commodities,” said Timo Wollmershaeuser, head of ifo’s economic forecast. “Inflation will come down this year, but slowly.”

The ifo Institute expects an annual inflation rate of 3.5% this year.

A pedestrian walks past a shop window in Berlin, capital of Germany, January 19, 2022. Germany’s annual inflation rate hit 3.1 percent in 2021, its highest level since 1993, l Federal Statistical Office (Destatis). (Photo by Stefan Zeitz/Xinhua)

People shop at a market in Frankfurt, Germany, Jan. 19, 2022. Germany’s annual inflation rate hit 3.1 percent in 2021, its highest level since 1993, the state said on Wednesday. Federal Statistical Office (Destatis). (Xinhua/Lu Yang)

A customer shops at a market in Frankfurt, Germany, Jan. 19, 2022. Germany’s annual inflation rate hit 3.1 percent in 2021, its highest level since 1993, the state said on Wednesday. Federal Statistical Office (Destatis). (Xinhua/Lu Yang)

A customer shops at a market in Frankfurt, Germany, Jan. 19, 2022. Germany’s annual inflation rate hit 3.1 percent in 2021, its highest level since 1993, the state said on Wednesday. Federal Statistical Office (Destatis). (Xinhua/Lu Yang)

A customer buys vegetables at a market in Frankfurt, Germany, January 19, 2022. Germany’s annual inflation rate hit 3.1 percent in 2021, its highest level since 1993, the German state said on Wednesday. Federal Statistical Office (Destatis). (Xinhua/Lu Yang)

A customer shops at a market in Frankfurt, Germany, Jan. 19, 2022. Germany’s annual inflation rate hit 3.1 percent in 2021, its highest level since 1993, the state said on Wednesday. Federal Statistical Office (Destatis). (Xinhua/Lu Yang)

Photo taken on Jan. 19, 2022 shows a gas station in Berlin, capital of Germany. Germany’s annual inflation rate reached 3.1% in 2021, the highest level since 1993, the Federal Statistical Office (Destatis) announced on Wednesday. (Photo by Stefan Zeitz/Xinhua)

Comments are closed.