The Federal Statistical Office (Destatis) said that the inflation rate in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at +4.1% in September 2021. In July and August 2021 it had been just under 4%. A higher inflation rate was last measured in December 1993 (+4.3%). Destatis also reports that consumer prices remained unchanged compared with August 2021 though.
There are various reasons for the high inflation rate, which include base effects due to the low prices in 2020. Especially the temporary value added tax reduction in the second half of 2020 and the sharp decline in mineral oil product prices a year ago had an upward effect on the overall inflation rate.
The prices of goods (total) increased by 6.1% between September 2020 and September 2021, which was above average. Especially the increase in energy product prices (+14.3%) was markedly higher than overall inflation.
Above-average year-on-year price increases were recorded in September 2021 also for food (+4.9%). Prices were markedly up on September 2020 for vegetables (+9.2%) as well as dairy products and eggs (+5.5%).
The year-on-year increases in energy product prices and food prices had a clear upward effect on the inflation rate. Excluding energy product prices, the inflation rate would have been +3.1% in September 2021; excluding the prices of both product groups, it would have been +2.9%.