German Inflation Hit Record High in June - 3.3 percent
Amazingly, everyone here seems to be hurting when it comes to food costs. From grocery shopping on Monday I found the following (all prices in Eur) and just in time to confirm the article below:
Cookies - Normally 0.69 - up to 1.09
Granola bars - normally 2.09- up to 2.59
Butter - normally 0.79-0.85 up to 0.98-1.12
Eggs (dozen) - normally 1.40 up to 1.65
I know I'm one person - and am finding these prices painful. I wonder how others are doing it with more mouths to feed. Also, a side thought - if pay raises are any indication - last year, our "annual" raise was on average 3%. They gave us an "extra" raise of 1.5% to cover for the raise in our insurance costs. If this is any indication - our merit increases - won't even make this year's inflation.
The German statistics office Destatis released news of the biggest increase in consumer prices since December 1993 on Wednesday, July 16 when a report showed prices had risen by 3.3 percent in June on a 12-month basis.
Consumer prices in Europe's biggest economy increased by 0.3 percent from May with energy and food prices leading the way, Destatis said.
"It was the third time this year that the three percent threshold was reached," a Destatis statement said.
The European Central Bank's inflation target is just below 2.0 percent in the medium term.
Food and fuel represented more than half of the annualized global price increase and corresponded to around 20 percent of all household spending, the report added.
The overall cost of fuels had leapt by 61.9 percent on the year, with motor fuels gaining 15.0 percent.
If energy was excluded, "the year-on-year rate of price increase would have been 1.9 percent," the statement said.
Food prices showing considerable gains
General food prices jumped by 7.6 percent in June from the same month a year earlier, with dairy products showing a gain of 18.9 percent. The cost of breads and cereals rose by 9.1 percent, but that of fish and seafood by just 1.2 percent.
Prices for durable consumer goods fell meanwhile, with computer equipment down by 16.4 percent on the year and TV sets costing 18.9 percent less on average.
The cost of services rose by 1.6 percent, in large part owing to rents, which account for 20 percent of the total calculation, Destatis said.
But it nonetheless pointed out that "the price trend for rents has remained below the level of the consumer price index for a considerable time and thus has had a dampening effect on inflation."
Oh - I also checked - gasoline -a liter of regular gasoline now costs about Euro 1.55, or $9.40 per gallon.