Data published by the Federal Statistical Office (Destatis) showed that last month, the growth of consumer inflation accelerated to 5.2% from 4.5% in October, updating the maximum of 2021, and recording the sixth increase in a row. Economists also expected an increase by 5.2%. Destatis reported that a higher inflation rate was last recorded in June 1992 (5.8%). Meanwhile, on a monthly basis, the consumer price index fell by 0.2% after an increase of 0.5% in October. Economists also expected a 0.2% decline.
Destatis stated that the increase in inflation in the second half of this year was due to the underlying effects due to low prices in 2020, a temporary reduction in value added tax in the second half of 2020 and especially low prices for petroleum products a year ago, as well as supply bottlenecks.
The data showed that prices of goods (total) increased by 7.9% per annum, while energy prices jumped by 22.1% per annum. Food prices increased by 4.5% per annum, mainly due to higher prices for edible fats and oils (+11.9%), as well as dairy products and eggs (+6.4%).
Meanwhile, excluding energy prices, the consumer price index increased by 3.4% per annum, while excluding energy and food products, inflation increased by 3.3% per annum.