German economic nightmare: Inflation hits new high of 7.9% as energy crisis erupts | World | New

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In some federal states, the figure has even exceeded the 8% mark. In Saxony, North Rhine-Westphalia, Bavaria and Hesse, consumer prices have risen by 8.0 to 8.4% since May last year. It comes amid soaring energy prices globally, partly caused by the war in Ukraine.

In North Rhine-Westphalia, for example, the average heating oil price was 74.3% higher than in May 2021.

The price of fuel in the same region increased by 40.5%.

Food prices are also experiencing massive price increases.

In Bavaria, customers had to pay an average of 9.2% more for food and non-alcoholic beverages than in the same period last year.

However, the Ifo Institute for Economic Research predicted that inflation would gradually decline from the middle of the year.

In May, the number of companies planning to raise prices over the next three months fell for the first time in months.

However, Ifo business chief Timo Wollmershäuser warned the rate would remain at around 6% for the year as a whole.

The UK is also experiencing skyrocketing costs, with prices rising 9% over the past year.

Inflation should reach 10% before the end of the year.

Bank of England (BoE) Governor Andrew Bailey told MPs he was unable to prevent the rate of inflation from hitting double digits.

Mr Bailey also warned of an “apocalyptic” rise in food prices around the world.

In a warning issued earlier this month, the BoE estimated that the economy would contract by almost 1% between October and December.

Meanwhile, energy prices are expected to rise another 40% in October, despite recent cost increases.

Mr Bailey said the Ukraine crisis and COVID-19 developments in China had “exasperated” the situation.

He explained: “The main development since our last report in February has been Russia’s illegal and unprovoked invasion of Ukraine.

“Global inflationary pressures rose sharply in the run-up to and after the invasion.

“This has led to a significant deterioration in growth prospects.

“Concerns about further supply chain disruption have also increased both due to the invasion and COVID developments, particularly in China.”

Additional reporting by Monika Pallenberg.

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