Inflation in Germany is rising at a faster rate than in the United Kingdom following Brexit, with food prices increasing by 2%.
GERMAN inflation is currently rising at a faster rate than that of the United Kingdom following Brexit, with a two percent increase in food prices.
According to estimates from the country’s Consumer Price Index, Germany’s Federal Statistical Office forecasted a 5.3 percent inflation rate for December 2021.
In November 2021, this estimate is (plus)0.5 percent, and the inflation rate for 2021 is expected to be (plus)3.1 percent.
This is the country’s highest rate of inflation since 1993.
Although the UK has experienced high inflation, it is currently at a lower level than Germany.
While the UK figures for December 2021 have yet to be released, according to economist Julian Jessop, food prices in Germany rose by more than 2% faster than in the UK in November 2021.
Mr Jessop claims that Germany’s overall price increase was 0.1 percent higher than the UK’s during the same period.
In November, food inflation in Germany was 4.5 percent, while it was only 2.4 percent in the United Kingdom.
Inflation has now surpassed 5% for the first time since Germany’s reunification.
However, economists warn that it may take some time for German inflation rates to fall again.
“The sharp rise in natural gas prices is unlikely to reach consumers until the beginning of 2022,” a spokesperson for the Leibniz Institute for Economic Research told the dpa news agency.
“There is still a sense that [eurozone]inflation could surprise to the upside for longer than expected,” Peter McCallum, a bank rates strategist at Mizuho Bank, told Reuters. “Markets have to position for the view that the ECB could capitulate and move rates earlier.”
Inflation has soared across Europe, owing in part to economies reopening following the pandemic.
People are spending more money now that the coronavirus restrictions have been lifted, but many businesses are struggling to keep up with the rapid increase in demand, as many operations slowed or scaled back during the pandemic.
High energy prices have exacerbated the problem, causing inflation to rise even more.
The average monthly grocery bill in the United Kingdom increased by nearly £15 due to rising food prices.
“News from the Brinkwire.”