Inflation in Germany jumped in September to 10% year on year, the highest value since December 1951, due to soaring energy prices in the wake of the war in Ukraine, according to provisional figures released Thursday.
The price index gained 2.1 points year-on-year from August, according to statistics institute Destatis. The evolution of the harmonized price index, which serves as a benchmark for the European Central Bank, peaks at +10.9% over one year.
The monetary institution is determined to bring inflation in the euro zone back within its mandate, to 2%, which has already led it to raise its rates twice since July, by 1.25 points in all, before others not planned in the coming months.
In detail, prices in Germany remain driven by the continued explosion in energy costs, caused by the war in Ukraine. They rose 43.9% year on year in September.
200 billion unlocked
German Chancellor Olaf Scholz announced on Thursday the release of 200 billion euros to precisely cap energy prices that weigh on households and businesses.
“A gas price cap could dampen inflation somewhat in the short term,” said Ulrich Kater, chief economist at Deka.
“Things will only really improve, however, if liquid gas transport capacities can be quickly expanded over the coming year,” he adds.
Food prices also continue to rise, driven by war and droughts. Their increase reached 18.7% over one year, according to Destatis. Added to this are the price effects of continued supply chain disruptions due to the Covid-19 pandemic.
ats/ther