According to preliminary data released by the Federal Statistical Office (Destatis) on Thursday, inflation in Germany in September will rise to 4.1 percent – the highest level since December 1993.
Energy prices, including household energy and fuel, showed the highest growth – 14.3 percent year on year. Food prices rose 4.9 percent.
Meanwhile, rents and prices for services in Germany continued to grow moderately by 1.3 percent and 1.6 percent year on year, respectively.
Although there are “many reasons for high inflation,” lower oil prices last year and a temporary reduction in value added tax (VAT) as part of the COVID-19 stimulus package have boosted inflation, according to Destatis.
Another factor that has caused inflation in Germany is the introduction last year of a price of 25 euros (29 US dollars) per ton of carbon in the transport and housing sectors of the country.