Ten years high Inflation at the highest level since the financial crisis
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Inflation has risen to the highest level in Germany in ten years in October. This is mainly due to the strongly increased energy costs. Two frequently used products became more expensive last year.
AFueled by rising energy costs, consumer prices in Germany rose in October to a peak of ten years. Inflation was 2.5 percent higher than the same month last year, as reported by the Federal Bureau of Statistics on Tuesday.
The Wiesbaden authority confirmed preliminary data. Higher year-on-year inflation last occurred in September 2008 with 2.8 percent – the year of the global financial and economic crisis.
For energy consumers had to pay 8.9 percent more than a year earlier. This again increased price inflation. In September, the percentage was still 7.7 percent. In particular, light fuel oil (up to 39.9 percent) and fuels (up to 14.8 percent) were considerably more expensive. Package travel costs 7.1 percent more in the autumn holiday period than in October 2017.
Food prices, which had been one of the drivers of inflation in recent months, increased by 1.9 percent. In September it was 2.8 percent. The reason for the delay was also the relatively high food prices a year ago, explained the authority of Wiesbaden.
Consumer prices rose by 0.2 percent in October compared to the previous month.
Inflation is also huge in the euro zone
The price index of the monetary policy of the European Central Bank (ECB), calculated for European comparative purposes, increased by 2.4% year-on-year. In the medium term, the monetary authorities are aiming for inflation of just under 2.0 percent for the eurozone – far enough away from the zero rate. Because persistently low or large falling prices could mislead companies and consumers to delay investments. That slows down the economy.
In the euro area, consumer prices (HICPs) reached 2.2 percent in October, the highest figure since the end of 2012, according to the first figures from the Eurostat statistical office.
Because inflation has been rising for some time now, the central bank wants to end its controversial asset purchases by the end of this year. Savers, however, must still be patient. Interest rates in the euro area will remain at least "in the summer" 2019 with a record level of zero per cent.