German inflation hits 7.9% in 2022, highest in over 70 years

AP , Tuesday 3 Jan 2023

Germany has recorded its highest annual inflation in more than 70 years, according to preliminary data released Tuesday by the country's Federal Statistical Office.

A light installation is projected onto the building of the European Central Bank during a rehearsal
A light installation is projected onto the building of the European Central Bank during a rehearsal in Frankfurt, Germany. AP

 

Surging energy and food prices due to Russia's attack on Ukraine saw full-year inflation reach 7.9% in 2022. The last time annual inflation was near that level was in 1951, when it stood at 7.6% as the post-war economic boom began. Annual inflation in 2021 stood at 3.1%.

The preliminary data showed that inflation slowed somewhat in December, to 8.6% compared to the same month in the previous year, as one-off government payments to help consumers pay their heating and gas bills took effect.

In October monthly inflation had reached a record 10.4% before dipping to 10% in November.

Rising prices reduce consumers' spending power. Many German unions have successfully campaigned for higher-than-average pay rises in recent months to offset the impact of inflation.

Meanwhile, unemployment figures in Europe's biggest economy rose slightly in December to 2.45 million, or 5.4%. This was about 0.1 percentage point higher than in November, though such an increase is not unusual at the end of the year as temporary contracts expire.

The full-year average jobless figure for 2022 stood at 2.42 million, almost 200,000 fewer than in 2021.

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