The annual inflation rate continued to soar for the fourth month in a row, rising to 4.5% in October, with energy prices shooting up 18.6%, estimates from the German federal statistics agency Destatis showed. It is the energy price hike that has been cited by experts as the main reason behind the overall increase in consumer prices.
In September, prices had risen in Germany by 4.1% year on year.
"There are a number of reasons for the high inflation rates since July 2021," Destatis said in a statement, citing a temporary reduction in value-added tax (VAT) in 2020 and the introduction of CO2 pricing since January 2021.
Europe's biggest economy introduced the VAT reduction to mitigate the impact of lockdowns implemented because of the coronavirus pandemic.
(...) Deutsche Welle
