BERLIN (Reuters) – Inflation in Germany has hit a 40-year high this month, with record-breaking inflation hitting Germany every month.
Inflation has taken a toll on the lives of people around the world, and even the world’s largest nations appear to be worried about the problem. Germany, Europe’s largest economy, is also facing a similar situation. It is learned that inflation in Germany has reached its highest level.
According to data released by the German agency Destitus, inflation in the country has reached 7.4 percent, the highest since the reunification of East and West Germany, before the second quarter of 1981. The former West Germany recorded a sharp rise in inflation last month.
The German Bureau of Statistics has blamed rising oil and gas prices on global markets for the rise in inflation due to the Greater Russia-Ukraine War and the Corona epidemic.
“Energy prices have risen sharply, especially since the start of the war in Ukraine,” the agency said.
The rate has risen sharply for the first time since the country’s reunification. The main reason for this is said to be the sharp rise in energy prices due to the Russian invasion of Ukraine. However, there are other important reasons for this.
Based on its preliminary data, the German statistics agency Destitus announced that consumer prices are now 7.4% higher than in April last year. “Energy prices have risen sharply, especially since the start of the war in Ukraine,” the agency said.
The last time commodity prices rose sharply in Germany was in the second quarter of 1981 in the former West Germany. Nine years before the reunification of Germany, the Iran-Iraq war at that time had also pushed up oil prices and led to a rise in inflation.
Inflation had reached 7.3 percent in March alone and is now 7.4 percent in April.
Germany could also face a possible gas suspension from Russia, and the risk of a possible supply cut could lead to a further rise in inflation.
German Chancellor Olaf Schulz has said that Russia may suspend gas supplies to Germany, as it has done with Poland and Bulgaria. However, he said that at present only “speculations” can be made on this and it is not necessary that these speculations be helpful. However, the head of the federal government stressed that Germany would have to “prepare” for this scenario as well.