Germany has witnessed its worst inflation in two decades. Inflation has hit double digits in Germany for the first time since the introduction of the euro 20 years ago. Inflation rose more than expected after temporary government relief measures ended and Europe’s energy crisis deepened.
Consumer prices rose 10.9 percent in September from a year earlier. That was 10.2 percent higher than economists in a Bloomberg survey had estimated. Inflation was expected to pick up as Germany scrapped summer discounts on public transport and fuel. But there was an even bigger price hike.
The German government announced on Thursday that it would rein in gas prices. This is estimated to control the rate of inflation going forward. Experts say the administration led by Chancellor Olaf Scholz will borrow at least 150 billion euros. Germany’s inflation rate is likely to reach the euro zone average of 9.7 percent, according to a Bloomberg survey of economists.