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German inflation hits record high as consumer confidence dips

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The Local ([email protected])
German inflation hits record high as consumer confidence dips
A customer in a supermarket hands over a €5 note.Photo: picture alliance/dpa | Moritz Frankenberg

Consumer prices rose by 10 percent in September, setting a new post-war record in Germany.

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Soaring well ahead of the 7.9 percent rate seen in August, Germany’s September inflation rate broke into the double digits for the first time in decades.

Marking the first month since summer’s €9 nationwide public transport ticket and fuel discount ended, September saw big increases in prices for energy and food in particular.

Compared to September 2021, energy overall was 43.9 percent more expensive last month. Both gas and heating oil prices doubled.

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Meanwhile, food prices have gone up around 20 percent, with dairy and eggs seeing even higher increases at 30 percent.

READ ALSO: When will Germany’s rising cost of living slow down?

In the meantime, German sentiment about the prosperity of the economy has declined, with only around half of those surveyed for the Ipsos National Wealth Index satisfied with the state of the current economy.

That number is also lower in eastern Germany and Berlin, where just 45 percent report feeling satisfied.

While around half of western Germans are confident they can set aside money for their future, only 37 percent of eastern Germans share that opinion.

A YouGov survey released Thursday also finds that 25 percent of Germans are now making only enough to meet their monthly costs—and therefore cannot save any money.

Ten percent say their household budgets have already been overwhelmed by rising costs.

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