Inflation rise again in Germany

By Alimat Aliyeva

Inflation in Germany is rising again, Azernews reports.

Consumer prices in July were 2.3 percent higher than in the same month last year. This was reported by the Federal Statistical Office.

Core inflation, which excludes volatile food and energy prices, was 2.9 percent in July. This is well above the European Central Bank's inflation target of 2 percent.

The main drivers of inflation in July were services. They rose in price by an average of 3.9 percent. The cost of food is on average 1.3 percent higher than in July 2023.

Everyday life has become significantly more expensive. The German Institute for Macroeconomics and Business Cycle Research (IMK) of the Hans Beckler Foundation has reached similar results in a current study: the purchasing power of middle-income families has fallen in recent years, despite the fact that the federal government has provided several aid packages. Wage growth is being eaten up by inflation. Higher taxes are withheld from higher salaries, thereby reducing purchasing power.
According to the Bundesbank, inflation will not decrease in the next few months. The financial prospects for middle-income families are likely to remain bleak. In its response, the Federal Ministry of Finance concludes: "Helping middle-income people and families remains a special priority of the federal government."