Germany's Inflation In The Double Digits For The First Time Since WW2

German inflation reached double digits for the first time since the euro was introduced more than 20 years ago (January 1, 1999), and also the highest since 1951 which was during World War 2. Inflation surged more than anticipated after temporary government-relief measures ended and Europe’s energy crisis worsened.

Consumer prices jumped 10.9% from a year ago in September, topping August’s 8.8% advance, the Federal Statistics Office said Thursday. Following this data release, chancellor Olaf Scholz responded to soaring energy costs by announcing plans for a €200bn cap on gas prices, which he described as a “defensive shield” to be financed by extending an off-balance sheet fund set up to provide aid during the coronavirus pandemic.

Energy prices rose 43.9 percent in the year to September, accelerating from 35.6 percent growth in August, while food prices surged 18.7 percent against 16.6 percent a month earlier. Services price growth accelerated to 3.6 percent from 2.2 percent.

It will be a cold winter for Germany...🥶

Resource: Financial Times, Bloomberg