Inflation in Germany Reached a 13-Year High

Inflation in Germany reached a 13-year high. In August, annual consumer inflation was 3.4 percent.

Consumer prices in Germany increased by 3.4 percent in August compared to the same period of the previous year. Thus, annual consumer inflation was at its highest level since 2008. The expectation of economists participating in the Bloomberg survey was that inflation would be 3.4 percent in August. On a monthly basis, consumer prices increased by 0.1 percent in August. In July, monthly inflation was recorded as 0.5 percent. Upward effects were observed on prices, mainly due to energy costs. Along with the current data, expectations regarding sales prices on the industry side also reached a record level.

German Central Bank Governor Warns Against Inflation

European Central Bank Governing Council Member and Bundesbank President Jens Weidmann stated that inflation in the Eurozone could rise faster than expected at the beginning of August and stated that the Emergency Pandemic Asset Purchase Program (PEPP) should not be extended.