October 14, 2022
The inflation rate in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at +10.0% in September 2022. The rate was +7.9% in August 2022 and then surged to this high, staying above 7% for seven months. “At 10%, the inflation rate has reached an all-time high since German reunification,” says Dr. Georg Thiel, President of the Federal Statistical Office. He states that “enormous price rises for energy products still are the main reason for the high inflation. But we also see price increases for many other goods, especially food. The end of both the fuel discount period and the 9-euro ticket availability also accelerated the price rises in September 2022. These temporary measures of the second relief package had a downward effect on overall inflation from June to August 2022.“ The Federal Statistical Office (Destatis) also reports that in September 2022 consumer prices increased markedly by 1.9% compared with August 2022.
End of relief measures accelerating price rise
In addition to the rising prices of all energy products due to the situation of war and crisis, delivery bottlenecks and significant price increases at upstream stages in the economic process had an impact on the inflation rate. The prices of other goods and services also went up as a consequence, among them again many food products.
Overall inflation accelerated in September 2022 also because two temporary measures of the second relief package ended, the fuel discount and the 9-euro ticket. The dampening effect of the relief measures on the consumer price index had been estimated at roughly one percentage point by the Federal Statistical Office when the relief measures took effect in June 2022. Higher prices of motor fuels and tickets for public regional and short-distance passenger transport in September 2022 showed the end of the relief measures in the transport sector. The increase of transport prices in September 2022 from the same month a year earlier amounted to +14.0%, after +3.7% in August 2022 (July: +5.4%; June: +8.3%).The figure for May 2022 had been +16.3%, which was before the relief measures took effect.
Prices of energy products up 43.9% year on year
Energy product prices were 43.9% higher in September 2022 than in the same month a year earlier (August 2022: +35.6%). There was a particularly large price increase for household energy (+51.8%). Heating oil prices more than doubled year on year (+108.4%) and natural gas prices rose by +95.1%. Electricity prices increased by 21.0%; the abolishment of the EEG surcharge effective as of July 2022 reduced the price rise only slightly.Motor fuel prices increased by +30.5% in September 2022, after having risen by +16.5% in August 2022 (July 2022: +23.0%; June 2022: +33.2%). The increase in motor fuel prices had been +41.0% in May 2022, before the fuel discount took effect. The end of the period in which a lower mineral-oil tax was charged was presumably only one reason for the large increase in motor fuel prices. The high prices of energy products are due, in particular, to the large increases of international purchase prices.
18.7% increase in food prices year on year
Food prices rose 18.7% in September 2022 compared with the same month a year earlier and thus more than overall prices. Prices have increased gradually since the beginning of the year (August: +16.6%). Higher prices were seen in all food groups also in September 2022. Prices were up considerably for edible fats and oils (+49.0%) and for dairy products and eggs (+29.1%). Consumers had to pay notably higher prices also for meat and meat products (+19.5%) and for bread and cereals (+18.5%).
Inflation rate excluding energy and food at +4.6%
Excluding energy prices, the inflation rate stood at +6.0% in September 2022. The extent to which food prices currently affect the overall rate of price increase is shown by the inflation rate when energy and food are excluded. It was much lower (+4.6%), not even half the overall inflation rate.
Prices of goods rose 17.2% on September 2021
The prices of goods (total) were up 17.2% in September 2022 on the same month of the previous year. The prices of non-durable consumer goods, which include also food and energy, increased notably by 23.3%. The prices of consumer durables rose by 5.9% (including furniture and lighting equipment: +9.1%; vehicles: +9.0%).
Service prices up by only 3.6% compared with a year earlier
The prices of services (total) increased by 3.6% in September 2022 on the same month of the previous year. Net rents exclusive of heating expenses, which have much impact as they account for a large part of household final consumption expenditure, rose by 1.8%. Larger price increases were observed for the maintenance and repair of dwellings and residential buildings (+13.9%), package holidays (+10.4%) and for catering services in restaurants, cafés and the like (+8.5%). In addition, the price reductions in public regional and short-distance passenger transport ended as the 9-euro ticket was no longer available. The prices of rail tickets in short-distance transport (+2.4%) and combined tickets for rail, bus and the like (+1.9%) were up again year on year in September 2022. In contrast, lower prices had to be paid for only a few services, for example telecommunications services(-1.5%) and services of social facilities (-1.4%).
The month-on-month comparison shows the sharp price rise caused by the abolishment of the 9-euro ticket and the fuel discount
Compared with August 2022, the consumer price index rose markedly by 1.9% in September 2022. Sharp rises in ticket prices were recorded for short-distance rail transport (+82.5%) and for combined passenger transport (+175.3%) as a result of the 9-euro ticket ending. Energy prices as a whole rose by 6.9%. Price rises were observed in particular for motor fuels (+12.5%), which was influenced by the fuel discount ending.As regards household energy, especially gas prices were up (+6.7%). In addition, households paid more for food (+1.8%, including vegetables: +3.9%; dairy products: +2.2%). There were also seasonal price fluctuations in September 2022. Higher prices of clothing (+5.7%) were contrasted by lower prices of package holidays (-10.9%).
Source: DESTATIS
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