Germany: The inflation rate continues to rise in February
The Federal Bureau of Statistics in the German city of Wiesbaden announced, on Wednesday, that the inflation rate in Germany continued at a high level last February, indicating, according to preliminary calculations, that consumer prices in the country rose in that month by 8.7% compared to the same month in 2022.
The annual inflation rate last January rose to 8.7% after the end of the one-time government subsidy to ease gas and remote heating burdens.
For months, Germany has been witnessing a high inflation rate driven by energy and food prices.
The office stated today that energy costs rose last month, according to preliminary figures, by 19.1% compared to their level a year ago, and food prices increased by 21.8% on an annual basis.
The surprise inflation data from Europe’s largest economy comes a day after inflation rose unexpectedly in two of the largest economies of the Eurozone, Spain and France.
The European Central Bank has raised interest rates by 300 basis points since July and promised another big move in March, but some policymakers have called for measured action after that given that inflation is now below October highs.
Bundesbank President Joachim Nagel dismissed these calls earlier on Wednesday, saying the recent declines in energy prices are likely to help reduce inflation in the near term but have no impact on the medium term.
“The rate hike announced for March will not be the last… It may be necessary to take more significant interest rate steps after that,” Nagel said in a speech.
The bureau added that compared to January, prices rose 1%, also exceeding expectations for a 0.7% month-on-month rise.