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The inflation rate in Germany, measured as the year-on-year (YoY) change in the consumer price index, was expected to be 5.3 per cent in December 2021, according to the Federal Statistical Office (Destatis). Compared with November 2021, consumer prices were expected to increase by 0.5 per cent. On an annual average, the inflation rate is expected to stand at 3.1 per cent in 2021.
There are a number of reasons for the high inflation rates since July 2021, which include base effects due to low prices in 2020, Destatis said in a press release.
In this context, especially the temporary value-added tax reduction and the sharp decline in mineral oil product prices have had an upward effect on the current overall inflation rate.
Germany’s inflation rate, measured as the year-on-year change in the consumer price index, was expected to be 5.3 per cent in December 2021, according to the Federal Statistical Office. Compared with November 2021, consumer prices were expected to increase by 0.5 per cent. On an annual average, the inflation rate is expected to stand at 3.1 per cent in 2021.
Apart from the usual market developments, additional factors are the introduction of carbon dioxide pricing as of January 2021 and crisis-related effects, such as marked price increases at upstream stages in the economic process.
So far, only some of these increases have had a moderate impact on the consumer price index and the inflation rate.
Fibre2Fashion News Desk (DS)
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