hit tracker
Friday, March 29, 2024
HomeLatest NewsGerman inflation moderates to 7.9% in 2022 despite the cost of energy

German inflation moderates to 7.9% in 2022 despite the cost of energy

Date: March 29, 2024 Time: 03:14:14

The German Federal Statistical Office (Destatis) has set the CPI data for the German country at 7.9% in 2022, which represents an increase of more than four percentage points compared to that registered in the previous year. The consequences of the war in Ukraine have particularly hit the European nation and despite the fact that the measures implemented by the Government of Olaf Scholz have alleviated the escalation of prices, in December double digits, with year-on-year inflation of 9.6%.

This result represents a slight improvement compared to 10% in November, however, energy and food prices are always a concern for the tripartite cabinet, made up of Social Democrats, Liberals and Greens. The prices of energy products grew by 34.7% throughout 2022, so if they were not taken into account, the CPI would be less than 5%.

The president of the Federal Statistical Office, Ruth Brand, has pointed out that this is the main reason for the historical inflation data, since it contaminates the food production chain and the cost ends up being assumed by the client at the time to fill your fridge. The price of food grew more than 13% in 2022, ten points more than the previous year. In addition, Germany has faced a delivery bottleneck problem that has been exacerbated by strikes in the transport sector.

cushioning effect of the measures

The Scholz government has implemented measures similar to those adopted in Spain, such as a 9-euro train ticket to travel throughout the country, a discount on fuel, a reduction in VAT and a single payment for gas and electricity. heating However, they have not been enough to equalize the result, given that the harmonized inflammation of Spain, which is the one used by Eurostat to make comparisons between countries, has stood at 5.5% at the end of the year, while the from Germany increases to 9.6%.

Core inflation, which tracks prices without taking energy and food into account, has also been a cause for concern in recent months, as its rise has accelerated to 4.9% in December. This reflects that companies have begun to replace the increase in costs to consumers.

Yet the country has almost made it through the winter and Putin’s moves to reduce its shipments through the Nord Stream pipelines.

Slight relaxation in 2023

The evolution of prices in Germany has been the most drastic in decades, since it represents the largest general increase in prices since the reunification that followed the fall of the Berlin wall. On the other hand, 2023 seems more hopeful, since the experts point to a slight relaxation, according to the German newspaper ‘Spiegel’. Specifically, the Institute for the World Economy (IfW) expects the price index to fall to 5.4%.

1.9% surpassing pandemic prize levels for the first time. Specifically, it exceeds the 2019 figure by seven tenths, while public spending increased only 1.1%, after two years of great efforts by the administration to face the coronavirus pandemic.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
RELATED ARTICLES

Most Popular

Recent Comments