On November 29 local time, the German Federal Statistical Office announced its estimated inflation rate in Germany for November. According to the report, the country’s inflation rate in November is expected to be 10%, slightly lower than 10.4% in October, which is the first time since July this year that Germany’s inflation rate has declined.
Germany’s Federal Statistical Office said price increases slowed in November. In recent months, high energy and food prices have pushed up inflation and the situation in November did not substantially change.
Energy prices in November were 38.4 percent higher than a year earlier, while food prices rose 21 percent year-on-year, according to preliminary data. Rising inflation leads to a decline in real purchasing power and workers’ wages continue to depreciate. Wages in Germany increased by 2.3% in the third quarter compared to the previous year, however this increase was offset by the increase in consumer prices. Adjusted for price developments, real incomes for Germans fell by 5.7% year-on-year, the largest drop since the data began in 2008.
Economists believe there is still no sign of a complete easing in inflation. Cramer, chief economist at Commerzbank, said inflation is likely to fall sharply from next spring when gas and electricity price cuts take effect and the impact of energy prices on inflation is reduced accordingly . (Headquarters reporter Yu Peng)