Inflation in August at 7.9 percent: Energy and food are driving inflation

Prices in Germany rose by almost eight percent in August compared to the previous year. This was mainly due to costs for natural gas, heating oil and food.

The Federal Statistical Office confirmed its first estimate for inflation in Germany in the morning: the increase in consumer prices was 7.9 percent compared to August last year.

This means that inflation is even accelerating slightly: in July the rate of inflation was 7.5 percent and in June it was 7.6 percent. “Price increases for energy products and food continue to be the main causes of the high inflation,” said Georg Thiel, President of the Federal Statistical Office.

Heating oil and natural gas drive energy prices

Energy has become most expensive for consumers. Prices for light heating oil climbed by 111.5 percent within a year, they had to pay 83.8 percent more for natural gas and 16.6 percent more for electricity. 16.5 percent more was required for fuels such as petrol. The government relief measures even had a price-dampening effect. With the expiry of the tank discount at the end of August, fuel prices rose more sharply again.

Energy and fuel prices have also increased the price of package tours by an average of 12.5 percent. Restaurants and accommodation services became 8.1 percent more expensive.

Meat and bread are becoming significantly more expensive

On average, Germans had to spend 15.7 percent more on food and non-alcoholic beverages in August. The front-runners were meat and meat products, which rose in price by 18.6 percent. Bread and grain products rose on average by 17.1 percent and vegetables by 9.7 percent.

ifo Institute: Inflation continues to rise at the turn of the year

From the consumer’s point of view, energy costs in particular should continue to drive up prices in the coming months. At the beginning of 2023 in particular, energy suppliers will adjust their electricity and gas prices noticeably to the high procurement costs, which have risen significantly after the Russian invasion of Ukraine. The Munich-based ifo Institute expects inflation to rise further to eleven percent by early 2023. According to estimates, 2023 as a whole should bring an average inflation rate of 9.3 percent.