Germany sees record post-war inflation in 2022
Official statistics have confirmed what many already know - 2022 was a record year for the cost of living in Germany, with no relief in sight.
2022 saw the biggest increase in the cost of living since the modern Federal Republic of Germany was first founded in 1949.
Consumer prices rose by 7.9 percent last year, driven mostly by food and energy price spikes, spurred on by Russia’s ongoing war against Ukraine.
Some months in 2022 broke the 10 percent barrier, and although inflation has slowed recently, the German statistics agency (Destatis) expects it to climb again in January and February - with no easing in sight this year at least.
Die #Inflationsrate lag 2022 bei 7,9 % und damit deutlich höher als in den vergangenen Jahren. Im Jahresdurchschnitt 2022 verteuerten sich vor allem die #Preise für Energie deutlich um 34,7 %, für Nahrungsmittel um 13,4 %. Mehr: https://t.co/PDwp3gtGXx pic.twitter.com/KI8y5T9iHI
— Statistisches Bundesamt (@destatis) January 17, 2023
The average price increase of 7.9 percent also masks just how much the prices of certain goods went up. Electricity, for example, rose by 20 percent, while natural gas increased in price by around 65 percent.
While groceries, in general, went up around 13 percent in price, certain goods, such as dairy products and eggs increased by a much higher rate of 20 percent.
What’s the outlook for 2023?
The German Bundesbank is expecting a slightly lower inflation rate in 2023, of just under 7 percent.
The #inflationexpectations in Germany for the next 12 months fell significantly by 1.1 percentage points between November and December 2022. At an average of 6.8%, they were thus below the 7% mark again for the first time since April 2022. https://t.co/RqKwuo2irZ #inflation pic.twitter.com/WORqCrNq8Q
— Deutsche Bundesbank (@bundesbank) January 13, 2023
The key variable here is whether the government’s planned gas price brake will function as anticipated.
But the rate is still far above the rates of around 2 percent typically seen before Russia’s invasion of Ukraine.
READ ALSO: When will Germany’s rising cost of living slow down?
Comments
See Also
2022 saw the biggest increase in the cost of living since the modern Federal Republic of Germany was first founded in 1949.
Consumer prices rose by 7.9 percent last year, driven mostly by food and energy price spikes, spurred on by Russia’s ongoing war against Ukraine.
Some months in 2022 broke the 10 percent barrier, and although inflation has slowed recently, the German statistics agency (Destatis) expects it to climb again in January and February - with no easing in sight this year at least.
Die #Inflationsrate lag 2022 bei 7,9 % und damit deutlich höher als in den vergangenen Jahren. Im Jahresdurchschnitt 2022 verteuerten sich vor allem die #Preise für Energie deutlich um 34,7 %, für Nahrungsmittel um 13,4 %. Mehr: https://t.co/PDwp3gtGXx pic.twitter.com/KI8y5T9iHI
— Statistisches Bundesamt (@destatis) January 17, 2023
The average price increase of 7.9 percent also masks just how much the prices of certain goods went up. Electricity, for example, rose by 20 percent, while natural gas increased in price by around 65 percent.
While groceries, in general, went up around 13 percent in price, certain goods, such as dairy products and eggs increased by a much higher rate of 20 percent.
What’s the outlook for 2023?
The German Bundesbank is expecting a slightly lower inflation rate in 2023, of just under 7 percent.
The #inflationexpectations in Germany for the next 12 months fell significantly by 1.1 percentage points between November and December 2022. At an average of 6.8%, they were thus below the 7% mark again for the first time since April 2022. https://t.co/RqKwuo2irZ #inflation pic.twitter.com/WORqCrNq8Q
— Deutsche Bundesbank (@bundesbank) January 13, 2023
The key variable here is whether the government’s planned gas price brake will function as anticipated.
But the rate is still far above the rates of around 2 percent typically seen before Russia’s invasion of Ukraine.
READ ALSO: When will Germany’s rising cost of living slow down?
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.