Inflation | Germany

12.7 percent increase in food prices

Food in particular is becoming increasingly expensive against the backdrop of current inflation.
IMAGO / imagebroker
Food in particular is becoming increasingly expensive against the backdrop of current inflation.

Even if prices for energy and food continue to rise - inflation in Germany was less rapid in June. According to the Federal Statistical Office, consumer prices rose by 7.6 percent year-on-year. In May, the inflation rate had still been 7.9 percent. However, food continues to be a cause for concern.

The rise in consumer prices in June was dampened by the fuel discount introduced at the beginning of the month and the 9-euro ticket. The German government is trying to ease the burden on people with these measures, which are limited to three months, among other things. "The main causes of high inflation continue to be price increases for energy products. The 9-euro ticket and the fuel discount had a slightly dampening effect on overall inflation in June 2022," said Dr. Georg Thiel, President of the Federal Statistical Office.

Due to fluctuating crude oil prices, the effects of the fuel discount cannot be precisely quantified, according to the Federal Office. Overall, energy cost 38.0 percent more in June than a year earlier. Gasoline became 33.2 percent more expensive, so the price increase weakened somewhat. In May, fuel prices had still risen by 41.0 percent. Light heating oil cost more than twice as much as a year earlier (+108.5%). Natural gas (+60.7%) and electricity (+22.0%) also increased significantly in price.

Increased upward pressure on food prices

Food prices increased by 12.7% year-on-year for households in June 2022. This means that the upward price trend strengthened again (May: +11.1%, April 2022: +8.6%). Price increases were observed for all food groups in June 2022. Edible fats and oils became considerably more expensive (+43.1%). Likewise, double-digit inflation rates were recorded for meat and meat products (+18.9%), dairy products and eggs (+15.3%), and bread and cereal products (+12.5%).

Compared to May, overall consumer prices increased by 0.1 percent in June. Here, too, the authority confirmed an initial estimate.

Inflation rates at the current level have never been seen in reunified Germany. The so-called old federal states experienced similarly high rates in the winter of 1973/74. At that time, oil prices rose sharply as a result of the first oil crisis.
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