According to a forecast by the Federal Statistical Office, the inflation rate jumped to 4.1 % in September. A new record: Last seen in December 1993, when it was 4.3 %.
The prices for energy (+14.3 %) and food (+ 4.9 %) increased sharply. Services increased by 2.5 % and apartment rents by 1.4 %.
In August consumer prices had already risen by 3.9 % compared to the same month last year. The Federal Statistical Office last determined a higher value in December 1993, when it was 4.3 %.
In order to stimulate consumption during the pandemic, the federal government had temporarily reduced VAT from July 1, 2020, to December 31, 2020. The regular VAT rates have been in effect again since January 2021, so goods and services tend to be expensive again.
But the price explosion could continue, experts warn. Inflation rates of around five percent in Europe’s largest economy are considered possible this year
- The bottom line is that pensioners have less money to live on due to the price increase. At 5 % inflation, a pension of 1,000 euros corresponds to only 950 euros after one year.
- The same applies to employees. For example, the value of 2,000 euros a month at 5 percent inflation corresponds to only 1,900 euros after one year.
- Inflation also hits savers hard. Savings books or time deposits lose value due to the price increase. Tip: Better invest in real estate, stocks and gold.