Germany’s 2022 Inflation Rate the Worst in More Than 30 Years – Bitcoin News

In a year marked by rising energy and food prices, Germany’s average inflation rate in 2022 rose to 7.9% from 3.1% in 2021. The Russian invasion of Ukraine and the supply bottlenecks caused by the war are told. to be one of the factors that helped push prices up.

Impact of the war between Ukraine and Russia

In 2022, Germany’s average inflation was 7.9%, the highest since reunification in 1990, the country’s statistics office has said. The 2022 interest rate will more than double to 3.1% in 2021, according to a report published by the German press office on January 3rd.

According to the report, the rise in energy and food prices was one of the main causes of inflation for several months. As expected, the German Federal Statistical Office (FSO) announced that Russia’s invasion of Ukraine and the resulting supply bottlenecks are two of the key factors that led to record inflation.

“German consumers had to pay 24.4% more for energy in December than a year earlier. Food prices rose by 20.7% per year,” the agency’s report states.

German monthly inflation slowing

Despite FSO statistics recording the country’s worst headline inflation since 1951 at 7.6 percent, monthly inflation had fallen to 8.6 percent in December 2022. Prior to that, inflation averaged 10.4 and 10 percent. , in October and November.

To minimize the impact of rising prices on the population, the German government is said to be planning “billions” in aid. It also seeks to achieve this by using “electricity and gas price brakes”. According to the report, some economists are optimistic that such measures will help tame inflation in 2023.

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Terence Zimwara

Terence Zimwara is an award-winning Zimbabwean journalist, writer and author. He has written extensively on the economic problems of some African countries and how digital currencies can provide Africans with an escape route.