Germany’s inflation rose to its highest level in almost 50 years. According to data released by the Federal Statistical Office of Germany on Tuesday, August inflation rose to 7.9 percent, owing primarily to increases in energy prices, a figure slightly above market expectations of 7.8 percent.
The agency said that the harmonised index of consumer prices in August increased 8.8 percent on the year, which followed an unexpected rise of 0.4 percent in July.
Since May, the country’s inflation, has been largely controlled by events in Ukraine following Russia invasion of the country.
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“Energy prices, in particular, have increased considerably since the war started in Ukraine and have had a substantial impact on the high inflation rate,” a statement from the agency website read.
When compared to the same time last year, energy prices were 35.6 percent higher in August, and food prices rose sharply as well. The rise includes measures to stifle inflation, including cheaper transport prices.
“Another factor with an upward effect on prices is interruptions in supply chains caused by the COVID-19 pandemic,” it added “Special effects such as the impact of the 9-euro ticket and the fuel discount are included in the results,” the agency said, linking the shift in prices to the impact on the supply chain influenced primarily by the COVID-19 pandemic.
Some analysts fear that it could be worse this September following Wednesday’s gas pipeline shut down by Gaszprom of Nord Stream 1 for maintenance.
