Inflation in Germany rose again in August, after falling slightly in July. According to Germany’s Federal Statistical Office, consumer prices in Europe’s largest economy rose 7.9 percent this month compared with a year earlier. That is the highest level since the oil crisis of the 1970s and equals May inflation.
In July inflation was still at 7.5 percent. According to the statistical office, inflation was pushed further in August by higher energy and food prices. Under a harmonized European measurement method, German inflation rose to 8.8 percent, from 8.5 percent in July.
The German government has taken steps to help households with rising consumer prices with, for example, cheaper public transport tickets and reduced fuel excise duties. These temporary measures will expire on Thursday, which could lead to a further rise in inflation in Germany.
Inflation can rise up to 10 percent
The Bundesbank estimates that the adjusted inflation rate could rise to 10 percent by the end of this year. The European Central Bank (ECB) raised interest rates by half a percentage point in July and may raise interest rates by three quarters of a percentage point next week to tackle high inflation. Inflation figures for the euro area will be released on Wednesday.
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