The HICP rose by 2.2 percent month-on-month, also confirming the preliminary data. The HICP rate is relevant to the monetary policy the European Central Bank (ECB).
The ECB is alarmed by high inflation and its potential impact on inflation expectations, which could lead to a wage-price spiral and thus entrench high price pressures. Individual members of the ECB Governing Council have spoken out in favor of a key interest rate hike of 75 basis points in October.
The national German consumer price index rose by 1.9 percent compared to the previous month. The annual inflation rate was 10.0 (previous month: 7.9) percent. The numbers were in line with the initial release and forecasts by economists.
“The inflation rate reached 10.0 percent, a new high in reunified Germany,” said Georg Thiel, President of the Federal Statistical Office.
As in the previous months, energy and food prices proved to be the drivers of inflation. Compared to the same month of the previous year, energy prices rose by 43.9 percent and food and beverages by 18.7 percent. The development was also influenced by price increases in upstream economic stages, supply chain problems and because dampening measures such as the tank discount and the 9-euro ticket were no longer applicable.
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DJG/apo/hab
(END) Dow Jones Newswires
October 13, 2022 02:09 ET (06:09 GMT)
FRANKFURT (Dow Jones)
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