Germany's inflation rate climbs to 7.9% in August

By Tuba Sahin

ANKARA (AA) – Germany’s annual consumer inflation rate stood at 7.9% this August, in line with market forecasts, according to official data released on Tuesday.

The first reading for the month marked a rise from July’s figure of 7.5%, a jump driven by increasing prices of energy products and food.

Energy prices surged 35.6% year-on-year in August, slightly lower than July’s 35.7%.

Household energy costs were up 46.4% as heating oil prices more than doubled with a 111.5% annual rise and natural gas prices climbed 83.8%.

Germany unveiled a €65 billion ($64.7 billion) inflation relief package last week to help households cope with spiraling inflation and energy bills, results of Russia’s war on Ukraine and the consequent sanctions imposed on Moscow.

The increase in food prices accelerated for the sixth consecutive month with a 16.6% annual jump in August, according to German statistical office Destatis.

On a monthly basis, Germany’s consumer prices index increased 0.3% in August.

“Two measures of the relief package had a slight downward effect on the overall inflation rate especially from June to August 2022: the 9-euro ticket and the fuel discount,” said Georg Thiel, president of Destatis.