Source: Xinhua
Editor: huaxia
2022-11-12 00:05:00

A consumer leaves a shopping mall in Berlin, capital of Germany, Nov. 7, 2022. Inflation in Germany, Europe’s largest economy, has been rising and reached 10.4 percent in October, according to official data. (Xinhua/Ren Pengfei)
BERLIN, Nov. 11 (Xinhua) — Germany’s annual inflation rate climbed to 10.4 percent in October, the biggest increase since 1990, the Federal Statistical Office (Destatis) said on Friday.
“The inflation rate has reached an all-time high since German reunification,” Destatis President Georg Thiel said, adding that “enormous price rises for energy products are still the main reason for high inflation.”
Despite government relief measures, prices for energy products soared by 43 percent compared to the previous year, according to Destatis. The increase was particularly strong for household energy at 55 percent, while the cost of natural gas more than doubled.
To cushion the effects of the energy crisis on consumers and companies, three relief packages worth 95 billion euros (97.8 billion U.S. dollars) have been announced by the government. In addition, the government has approved a “protective umbrella” of up to 200 billion euros, to cap electricity and gas prices.
The third relief package includes a tax reduction on natural gas, from 19 percent to 7 percent. The measure took effect retroactively from the start of October, and “had a downward effect on energy product price rises,” Destatis noted.
Rising prices, however, were not limited to energy, with “more and more price increases also for many other goods and services,” Thiel added. “Rising food prices have become particularly notable for households.”
The German Council of Economic Experts (GCEE) expects an inflation rate of 8.0 percent for 2022, and 7.4 percent for 2023, according to its annual report published on Wednesday.
The European Central Bank (ECB) “must continue to act decisively,” said Ulrike Malmendier, member of the GCEE, “The challenge will be to raise interest rates adequately to fight inflation without causing an excessive slump in economic activity.”
Inflation in the eurozone is expected to reach 10.7 percent in October, according to Eurostat, the statistical office of the European Union. The ECB at the end of October raised key interest rates by 75 basis points, with the interest rates of the main refinancing operations, the marginal lending facility and the deposit facility at 2 percent, 2.25 percent and 1.5 percent, respectively. (1 euro = 1.03 U.S. dollars)

Consumers shop at a supermarket in Berlin, capital of Germany, Nov. 11, 2022. Inflation in Germany, Europe’s largest economy, has been rising and reached 10.4 percent in October, according to official data. (Xinhua/Ren Pengfei)

This photo taken on Nov. 11, 2022 shows goods in a shopping trolley at a supermarket in Berlin, capital of Germany. Inflation in Germany, Europe’s largest economy, has been rising and reached 10.4 percent in October, according to official data. (Xinhua/Ren Pengfei)

Consumers shop at a supermarket in Berlin, capital of Germany, Oct. 28, 2022. Inflation in Germany, Europe’s largest economy, has been rising and reached 10.4 percent in October, according to official data. (Xinhua/Ren Pengfei)

A consumer shops at a supermarket in Berlin, capital of Germany, Nov. 11, 2022. Inflation in Germany, Europe’s largest economy, has been rising and reached 10.4 percent in October, according to official data. (Xinhua/Ren Pengfei)

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