The rise in energy prices is being exacerbated by the war in Ukraine and an imminent freeze on oil and energy supplies from Russia.
(Photo: dpa)
Frankfurt According to provisional calculations by the Federal Statistical Office, prices in Germany rose by 7.3 percent in March compared to the same month last year. According to the information, the inflation rate is at a similarly high level as in autumn 1981, when the Iran-Iraq war led to massive increases in mineral oil prices. On average, experts had expected a value of 6.3 percent for March, in the previous month the consumer price index was 5.1 percent.
The main drivers are energy costs, the increase in which is being exacerbated by the war in Ukraine and an imminent stop in oil and energy supplies from Russia.
Michael Heise, chief economist at HQ Trust, commented: “The sober figure of a price increase of over seven percent means a massive real devaluation of income in the German economy – labor income, pensions and transfers, entrepreneurial and capital income. Consumer and investment demand will be weakened, growth forecasts revised downwards.”
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