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The current inflation rate in Germany is only 3.8 percent - as prices developed in October
The economic situation in Germany remains tense, but the inflation rate fell to 3.8 percent in October, according to a report from the Federal Statistical Office. This is the lowest value in a long time and is below the European Central Bank's interest rate level for fixed-term deposits for the first time. According to an analysis of the t-online shopping cart, prices for many common consumer goods are currently stable and some products have even become slightly cheaper. Vegetables in particular have become up to 17 percent cheaper compared to the previous month, while the price of rice has risen slightly. According to analysts, the decline in inflation is mainly due to the disappearance of high...
The current inflation rate in Germany is only 3.8 percent - as prices developed in October
The economic situation in Germany remains tense, but the inflation rate fell to 3.8 percent in October, according to a report from the Federal Statistical Office. This is the lowest value in a long time and is below the European Central Bank's interest rate level for fixed-term deposits for the first time. According to an analysis of the t-online shopping cart, prices for many common consumer goods are currently stable and some products have even become slightly cheaper. Vegetables in particular have become up to 17 percent cheaper compared to the previous month, while the price of rice has risen slightly.
According to analysts, the decline in inflation is mainly due to the absence of high year-on-year price increases for energy and food as well as the easing of supply bottlenecks. Silke Tober from the Institute for Macroeconomics and Economic Research predicts that this trend will continue in the coming months, as not all declines in world market prices for food, natural gas and electricity have been passed on to consumers.
Jörg Krämer, chief economist at Commerzbank, does not share this assessment and warns that the inflation problem is far from being solved. He argues that workers have suffered massive losses in purchasing power since the start of the pandemic and are now pushing through higher wage increases that will keep inflation particularly high in labor-intensive services.
The effects of this development on the market and the financial industry can be diverse. A decline in inflation can lead to consumers having more purchasing power and thereby have a positive impact on consumption. At the same time, however, it can also mean that companies have less room to increase prices and may have to reduce their profit margins. In addition, discussions about possible interest rate increases could be influenced by the European Central Bank.
Source: According to a report from t-online.de
Read the source article at www.t-online.de