Germany's 2022 inflation rate is the worst in more than 30 years -

In a year marked by rising energy and food prices, the average inflation rate in Germany rose to 7.9% in 2022 from 3.1% in 2021. Russia's invasion of Ukraine as well as supply shortages caused by the war are cited as among the factors that helped drive up prices.

Effects of the Ukraine-Russia War

In 2022, the average inflation rate in Germany was over 7.9%, the highest level since reunification in 1990, the country's statistical office said. According to the German Press Agency report from January 3rd, the rate in 2022 is more than twice as high as the 3.1% in 2021.

Loud Test report, rising energy and food prices were among the main drivers of inflation for several months. As expected, the Federal Statistical Office (FSO) has reportedly identified Russia's invasion of Ukraine and the resulting supply bottlenecks as two key factors behind record inflation.

"Consumers in Germany had to pay 24.4% more for energy in December than a year earlier. Food prices rose by 20.7% within a year," explains the agency's report.

Germany's monthly inflation is slowing

Despite recording what it called the country's worst overall inflation rate since 7.6% in 1951, the BFS data suggests the monthly rate had fallen to 8.6% in December 2022. Before that, the rate averaged 10.4% and 10%. , in October and November respectively.

In order to minimize the impact of rising prices on the population, the federal government is reportedly planning “billions in aid”. This should also be achieved through the use of “price caps for electricity and gas”. According to the report, some economists are optimistic that such moves will help tame inflation in 2023.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer from Zimbabwe. He has written extensively about the economic struggles of some African countries, as well as how digital currencies can provide an escape route for Africans.

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