Inflation in Germany has risen to 28 years ago | News from Germany about Germany | DW

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In Germany, consumer prices rose significantly in October. The inflation rate in the current month in comparison with October 2020, according to preliminary estimates, will be 4.5 percent. This is the highest figure in the last 28 years – since August 1993, the Federal Statistical Office of Germany in Wiesbaden reported on Thursday, October 28.

Especially significant – by 18.6 percent – increased energy prices. Food products rose in price by an average of 4.4 percent, prices for services increased by 2.4 percent on an annualized basis. Meanwhile, in comparison with September of this year, consumer prices increased by 0.5 percent, the ministry said in a statement.

There are several reasons for the rise in inflation

The high rates of inflation recorded in Germany since July were attributed by the statistical office to a number of reasons. These include the effect of low prices in 2020, especially the temporary reduction in the value added tax rate, which was introduced last year to support the economy amid the pandemic, as well as the low prices for petroleum products.

In addition, experts pointed to the introduction in January 2021 of a tax for the emissions of carbon dioxide (CO2) generated from the combustion of diesel fuel, gasoline, fuel oil and natural gas in the amount of 25 euros, which, among other things, leads to an increase in energy prices.

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