Food prices in Bavaria have risen by 20.6 percent compared to the same month last year.
(Photo: dpa)
Berlin Inflation in Germany surprisingly eased in November but remains close to its 71-year high. In the six federal states that are relevant for the first calculation of the nationwide inflation rate, consumer prices rose more slowly than in October.
This emerges from the data published by the statistical offices on Tuesday. In North Rhine-Westphalia, the most populous federal state, inflation fell from 11.0 to 10.4 percent, in Baden-Württemberg from 9.8 to 9.6 percent, in Saxony from 10.1 to 9.9 percent, in Hesse from 9, 9 to 9.7 percent.
In October, nationwide inflation was 10.4 percent, its highest level since 1951. The Federal Statistical Office intends to make its first estimate for the month that is coming to an end this afternoon. Economists polled by the Reuters news agency have predicted an unchanged price increase of 10.4 percent.
However, experts are still not giving the all-clear. “We are approaching the summit, but it is still too early for a storm of enthusiasm,” commented ING chief economist Carsten Brzeski on the price development. The decline in inflation is currently still largely due to the fact that energy prices are no longer rising.
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“However, since gas and electricity prices in particular will continue to rise for consumers in the coming months and there is still a lot of inflationary pressure – as can be seen with producer prices – I do not rule out a slight further increase,” said Brzeski. The peak in inflation should definitely not be reached until the first quarter of 2023.
Gas prices are 145 percent higher than last year
“Inflation will continue to be largely driven by rising energy prices,” explained the Bavarian statistical office. In Bavaria, for example, the prices for heating oil rose by 48.0 percent compared to the same month last year, and for gas by as much as 144.9 percent. Food prices increased by 20.6 percent. Compared to the previous month, however, some things became cheaper: heating oil cost 13.9 percent less than in October, fuel prices fell by 3.4 percent.
Despite the ray of hope, the days of sharply rising prices are not over yet. Almost every second company in Germany wants to increase its prices in the coming months. The barometer for price expectations fell to 46.7 points in November after having stood at 51.3 in October. This was announced by the Munich Ifo Institute for its monthly survey. How much the companies want to increase their prices is not asked.
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