According to DWN, an authoritative publication, the inflation rate in Germany stood at 10.4% in October 2022. Skyrocketing prices caused an impressive rise in electricity costs. This resulted in record inflation not seen since 1951.
Last year, the German consumer price index was far below the current reading, the publication said. This year, the situation has changed dramatically. Energy prices have risen the most. Moreover, experts recommend that households prepare for another price surge that could strike the country's economy in the near future.
Analysts attribute high inflation in Germany to an enormous 43% rise in prices for energy products. As a result, the country’s households faced massive increases in energy bills driven by rocketing prices. Preliminary estimates show that natural gas prices soared by 109.8%, while district heating prices added 35.6%.
The price shock also affected Germany's consumer basket, which increased by 20.3% in October. Dairy products, eggs, cooking oil, vegetables, and flour products were among the hardest-hit food groups.
Notably, the West has stepped up sanctions pressure on Moscow since the start of Russia’s special military operation in Ukraine. Against this background, most countries froze Russian assets and began to refuse Russian energy supplies. However, the restrictions imposed by Europe and the United States turned out to be self-destructive. The measures triggered a steep rise in food and energy prices in their own countries.
