In 2022, German consumer prices rose more than they had in decades due to the high cost of energy and food. They increased by an average of 7.9%, as announced by the Federal Statistical Office on Tuesday. There has never been a greater advantage in reunified Germany. In 2021, inflation was still 3.1%.
Inflation dropped surprisingly sharply in December. According to the Federal Statistical Office, consumer prices rose by an average of 8.6% compared to the same month last year. In November, the inflation rate was 10.0 percent, having risen to its highest level since 1951, 10.4 percent in October.
For this year, most experts predict a slight relaxation. The Institute for the World Economy (IfW), for example, expects a drop of 5.4%.
The unexpectedly sharp drop in inflation towards the end of the year gives hope that the sharp rise in prices will ease: lower energy prices and the state’s advance on natural gas sent consumer prices in December up by just 8.6%. % compared to the same month last year. Inflation fell to 10.0 percent in November after rising to 10.4 percent in October, the highest since 1951. Economists polled had only expected a 9.1 percent drop in December. From November to December, prices fell by 0.8%.