Germany Inflation Rate

The consumer price inflation rate in Germany was confirmed at 3.9% year-on-year in August 2021, the highest level since December 1993, due to further recovery in domestic demand and base effects from low prices in 2020, in particular the temporary lowering of VAT rates and the decline in the price of petroleum products. The introduction of CO2 pricing as of January 2021 and crisis-related effects, such as marked price increases at upstream stages in the economic process, are also weighing on the CPI. Goods prices rose by 5.6% (vs 5.4% in July), boosted by energy (12.6% vs 11.6%) and food cost (4.6% vs 4.3%). In addition, services inflation accelerated to 2.5% from 2.2%, on the back of net rents exclusive of heating expenses (1.4%), services of social facilities (5%), maintenance and repair of vehicles (5.1%) and for catering services in restaurants, cafes and the like (3.5%). On a monthly basis, consumer prices were unchanged.