The inflation rate reached 10% in Germany in September, the first double-digit record in the last 70 years. It is a value that, through symbolism, will increase public pressure on the German authorities and on the ECB to maintain the path of interest rate hikes.
The data released this Thursday show that energy and food prices continue to be the areas where inflation is being felt most intensely. However, the rise in prices has also spread to other segments of goods and services.
“There is no end in sight” to price pressure, says Ralph Solveen, an economist at Germany’s Commerzbank. “Next year the rate of inflation is only expected to go down because energy prices are not expected to rise as fast. [na comparação homóloga] like this year, partly due to government intervention.” “Underlying price pressures should remain high,” the economist concludes.
In the previous month, August, year-on-year inflation stood at 7.9%, which means that year-on-year inflation jumped more than two percentage points between August and September. “Inflation is boiling”, say the ING economists, in an analysis note, where they show that they believe that “inflation will continue to rise” and only next spring the rate of price increase may be attenuated due to the base effect (ie due to which is being compared, year after year, with the spring of 2022, when prices had already reached a higher level).
Source: Observadora
