Heating oil is twice as expensive as in 2021
Energy and food drive inflation in Germany
The Federal Statistical Office confirms that inflation in Germany in August amounted to 7.9 percent. The increase in electricity prices is still limited, but fuel oil and natural gas are becoming much more expensive. When it comes to food, vegetable oils and dairy products in particular are on the rise.
Inflation in Germany rose again ahead of the end of the tank discount and the €9 ticket. Goods and services in August cost an average of 7.9% more than a year earlier, confirmed an earlier estimate by the Federal Statistical Office. In July, the inflation rate was 7.5 percent, and in June – 7.6 percent.
“The main reasons for high inflation are still rising energy and food prices,” said Georg Thiel, president of the Federal Statistical Office. Government relief measures continued to have a deterrent effect, although they were applied only from June to August. With the expiration of the discount on tanks, fuel prices have risen again: until recently, gasoline and diesel fuel were more expensive at gas stations than in all countries directly bordering the EU.
Electricity costs 16% more
Energy cost 35.6 percent more than in August 2021. Household energy increased particularly sharply, by 46.4 percent. Prices for light heating oil over the year more than doubled by 111.5 percent. The increase in prices for natural gas amounted to 83.8 percent. Electricity cost 16.6% more. Fuels such as gasoline required 16.5% more.
Food prices also rose above average by 16.6 percent for the sixth month in a row. Edible fats and oils (+44.5%), as well as dairy products and eggs (+26.8%) went up significantly. Consumer prices also increased significantly for meat and meat products (+18.6 percent) and for bread and cereal products (+17.1 percent).
Especially in early 2023, energy suppliers are likely to noticeably adjust their electricity and gas prices due to high procurement costs, which have risen significantly since the Russian invasion of Ukraine. According to the Ifo Institute, this will push the inflation rate up to about eleven percent early next year. In general, Munich researchers expect an average inflation rate of 9.3 percent for 2023, after 8.1 percent this year. Most recently, nearly one in two companies surveyed by the IFO said they want to raise selling prices in the coming months.