German inflation hits a new all-time high due to the surge in energy prices. The consumer price index, calculated according to the harmonized standards of the European Union, marks an annual + 8.8% in August from + 8.5% in the previous month. The reading is in line with the Bloomberg consensus.
“Judging by the available regional inflation components, the downward pressure of the government’s energy aid package and slightly lower oil prices was more than offset by higher gas and electricity prices, higher food prices and higher prices for leisure and packaged holidays, ”comments Carsten Brzeski, global head of Macro at Ing.
The Bundesbank estimates German inflation to reach around 10% in the last quarter of 2022 with highly uncertain prospects due to the “unclear situation” on the commodity markets.