Germany Recorded Annual Average Inflation of 7.9% in 2022

**German Inflation Worsens, Reaches 7.9% in 2022**

Germany’s Federal Statistical Office (Destatis) revealed that their average inflation rate in 2022 stood at a concerning 7.9%, a large leap from the 3.1% in the previous year.

Ruth Brand, the president of Destatis, attribute the historically high rate to increased prices in energy products and food due to the war in Ukraine. Notably, monthly inflation rates reached 10% in September before peaking at 10.4% in October, as opposed to a rate of 10.0% in November and 8.6% in December.

This increase also greatly affected product prices and services, with goods rising by 13.5% and services by 2.9% year-on-year. Without the influence of energy, inflation stood at 4.9% whereas for food it was 13.4%.

The high rate was partially alleviated by relief measures such as a discounted monthly ticket of 9 euros for public transport, a discount on fuel, suppression of the surcharge to finance renewable energies, a reduced VAT on gas and district heating, and payment of households’ gas and heating bills for December by the State.

Destatis also revealed that according to their harmonized CPI, the rate of inflation was 8.7% in 2022. As of now, the German government is focusing on ways to slow down the increasing prices.

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