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Inflation in Germany hits new 13-year high in August
02 Sep '21
2 min read
Pic: Shutterstock
Germany's annual consumer price inflation rose to a new 13-year high in August, according to preliminary data from the Federal Statistics Office, indicating increasing price pressures. Consumer prices, harmonised to make them comparable with inflation data from other European Union (EU) countries (HICP), rose by 3.4 per cent compared with 3.1 per cent in July.
The national inflation rate (CPI) even soared to 3.9 per cent in August, hitting its highest since December 1993 when the economy boomed following German reunification, a global newswire reported.
Europe's largest economy is trying its best to recover from the pandemic as companies struggle with supply shortages.
Germany's preliminary consumer price figures do not include values for core inflation.
German central bank chief Jens Weidmann has expressed concern over the prospect of the European Central Bank's low-interest-rate environment being extended for too long.
Data released earlier showed German inflation outpaced wage growth in the second quarter as rising price pressures caused by the economic recovery and supply bottlenecks in manufacturing reduced the spending power of consumers.
The latest data suggests wages will not keep up with inflation also for the rest of the year.
In Spain, EU-harmonised consumer prices rose by 3.3 per cent year-on-year in August from 2.9 per cent in July, separate data from the National Statistics Institute (INE) showed.
The German and Spanish figures indicate that euro zone inflation has strengthened further in August.
The national inflation rate (CPI) even soared to 3.9 per cent in August, hitting its highest since December 1993 when the economy boomed following German reunification, a global newswire reported.
Europe's largest economy is trying its best to recover from the pandemic as companies struggle with supply shortages.
Germany's preliminary consumer price figures do not include values for core inflation.
German central bank chief Jens Weidmann has expressed concern over the prospect of the European Central Bank's low-interest-rate environment being extended for too long.
Data released earlier showed German inflation outpaced wage growth in the second quarter as rising price pressures caused by the economic recovery and supply bottlenecks in manufacturing reduced the spending power of consumers.
The latest data suggests wages will not keep up with inflation also for the rest of the year.
In Spain, EU-harmonised consumer prices rose by 3.3 per cent year-on-year in August from 2.9 per cent in July, separate data from the National Statistics Institute (INE) showed.
The German and Spanish figures indicate that euro zone inflation has strengthened further in August.
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