Germany: inflation at 10%. They managed to get to double digits

On the same day of the announcement of yet another maxi aid package for families and businesses, the German inflationary figures arrive, marking a further important increase. Consumer price inflation in Germany jumped to 10.0% yoy in September 2022, the highest ever recorded and well above market expectations of 9.4%, according to a preliminary estimate. Consumer prices have risen due to the worsening of the energy crisis in Europe's largest economy and continuing disruptions in the supply chain. Inflation of goods rose to 17.2% from 14.7% in August, driven by the increase in the cost of energy (43.9% versus 35.6%) and foodstuffs (18.7% versus 16.6%). Additionally, service prices increased at a faster pace of 3.6%, up from 2.2% in August, even as rental inflation fell to 1.7% from 1.8%. On a monthly basis, consumer prices rose 1.9% in September, the largest increase since March's near record of 2.5%.

Here is the explanatory chart shortly

If we look at the 10 years we can appreciate how particular the current situation is:

Real inflation has exceeded market forecasts, but, above all, the Germans have not seen these values ​​for decades. At the same time, the policy of aid to households and businesses in the absence of an additional supply of gas will only rekindle inflation itself. Berlin, like Rome, must choose between the collapse of companies and families, or the growth, in the short term, of inflation and debt. There are no immediate alternatives. In the medium term there would be, but no serious will to pursue them is glimpsed.

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The article Germany: inflation at 10%. They managed to reach the double figure comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/germania-inflazione-al-10-sono-riusciti-ad-arrivare-alla-doppia-cifra/ on Thu, 29 Sep 2022 14:01:54 +0000.