Level inflation in Germany in July it is expected at the level of 7.5 percent. This is evidenced by the data, which on Thursday, July 28, resulted in the monthly report of the Federal Statistical Office of Germany (Destatis). For comparison, in June the corresponding figure was 7.6 percent.
Experts suggest that consumer prices will rise by 0.9 percent compared with last month’s data.
Experts state that the cost of energy carriers has a significant impact on high inflation. Thus, in July their price was 35.7 percent higher than in the same month last year. The cost of food is also increasing at a faster rate – plus 14.8 percent.
The acceleration in momentum is influenced, in particular, by the interruption of supply chains as a result of the COVID-19 pandemic.
Not all experts believe that the peak of inflation has been passed
At the same time, the ifo Munich Institute for Economic Research, based on a survey of companies, believes that peak inflation, most likely already passed. Economist Jens-Oliver Niklasch, on the other hand, is more skeptical. “I would not go so far” and claim that “we have reached the highest point,” said the expert. Against the backdrop of a shortage of energy resources from the Russian Federation, it is still completely unclear what the dynamics of electricity costs for consumers will look like, he stated.
Business climate index in Germany fell to the lowest level since June 2020
Earlier, on July 25, the ifo Institute noted that the business climate index in Germany fell to 88.6 points in July, compared with 92.2 points (seasonally adjusted) in June. This is the lowest rate since June 2020. Deterioration of sentiment is recorded in the industrial sector, services, trade, construction industry. Germany is on the verge of a recessionexperts say.