The rise in consumer prices in Germany slowed down somewhat in November. However, the inflation rate remained in double digits at 10 percent. The Federal Statistical Office confirmed an initial estimate on Tuesday. “Despite a slight relaxation in energy prices, the inflation rate remains at a high level of 10.0 percent,” said the President of the Wiesbaden authority, Georg Thiel. “We are also increasingly observing price increases for many other goods in addition to energy.” In October, the inflation rate reached 10.4 percent, its highest level in about 70 years.
Economists see no reason to give the all-clear in the weakening in November. Many economists do not expect a more significant drop in inflation until spring. High rates of inflation reduce the purchasing power of consumers and eat away at growth in income. People can afford less for one euro.
Inflation has been fueled by energy and food prices for months. Energy cost 38.7 percent more in November than a year earlier. The price increase weakened somewhat after growth of 43 percent in October. Consumers had to pay 21.1 percent more for food than in November 2021. Compared to the previous month, consumer prices fell by a total of 0.5 percent in November.
Inflation rates at the current level have never existed in reunified Germany. In the old federal states, rates of around 10 percent and above were measured in the early 1950s. However, the calculation method has changed over time.
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