Germany's inflation rate expected to be 5.3% in Dec 2021

There are a number of reasons for the high inflation rates since July 2021, which include base effects due to low prices in 2020, Destatis said in a press release.

In this context, especially the temporary value-added tax reduction and the sharp decline in mineral oil product prices have had an upward effect on the current overall inflation rate.

Apart from the usual market developments, additional factors are the introduction of carbon dioxide pricing as of January 2021 and crisis-related effects, such as marked price increases at upstream stages in the economic process.

So far, only some of these increases have had a moderate impact on the consumer price index and the inflation rate.

Fibre2Fashion News Desk (DS)