Berlin – No, it’s not a surprise. Inflation in Germany jumped above the four percent mark in September. The rate of price increases is higher than it has been in 28 years. That sounds dramatic at first. Only: Most economists had expected that. It is primarily temporary effects that are currently driving inflation. A CO₂ price has been in place since the beginning of the year, the VAT cut expired and the economy is picking up after the Corona crash. It is normal and, yes, also desirable that prices rise in such a mixed situation.
Inflation: Electricity and gas prices are exploding
But it is also true: Energy in particular has become more expensive – and people with little money feel this particularly. It is true that the price of crude oil crashed in the pandemic and is now recovering. Nevertheless, the price increases for gas and electricity cannot be dismissed out of hand. Politicians should be honest and Germans should be in the mood for an expensive winter. An upcoming traffic light coalition in Berlin will have to find an answer, especially for people who are overwhelmed by high energy prices. A surcharge for housing benefit or a special payment for Hartz IV recipients would be conceivable.
But there is no reason for alarmism, as it is currently stirring up the boulevard. As long as wage developments are moderate, there is nothing to suggest that inflation is spiraling out of control. This is where the common sense of employers and trade unions is required. In any case, most experts assume that the inflation rate in Germany will approach the two percent mark again next year – even without the intervention of the European Central Bank. The time for monetary tightening will come. But not now.
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