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    Home » German Inflation Rate Surges 5.3% in December
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    German Inflation Rate Surges 5.3% in December

    January 6, 20221 Min Read
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    Inflation in Germany rose to its highest rate in nearly 30 years as price pressures continue to build up in Europe’s largest economy.

    • Consumer prices increased by 5.3% YoY in December, as the cost of energy rose by 18.3%, followed by goods (+7.8%), food (+6%), and services rose by (+3.1%).
    • That figure is an increase from the 5.2% inflation posted in November. Prices increased by 0.5% in December alone.
    • The increase in Germany’s inflation rate was attributable to the end of last year’s short-term VAT tax cut, the rise in the oil price, and price increases across supply chains due to the COVID-19 pandemic.
    • On an EU-harmonised basis, Germany’s annual inflation rate last month was 5.7%, nearly triple the ECB’s 2% target.

    Germany’s government officials and policymakers expect inflation to cool down further in the coming as transitory effects will likely fade away from January onwards.

    DAX down -1.08%, EUR USD up +0.01%

    Source: Federal Statistical Office

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