Consumer prices in Germany in July rose by 3.8 percent in annual terms. This is a record pace since 1993, according to the Federal Statistical Office of the country (Destatis).
In June, consumer prices flew by 2.3 percent in annual terms. The main economy of Europe faced the fact that from July 2020 to July 2021 the cost of goods increased by 5.4 percent, which turned out to be higher than the average. Inflation was associated with increasing energy prices, noted in Destatis.
Earlier it was reported that the leadership of the European Central Bank (ECB) wanted to ensure a more steady increase in prices in the eurozone and announced the introduction of a new target inflation parameter at the level of two percent per annum.
The previous policy provided for a flexible inflation reference, which was to be slightly lower than two percent per annum, but at the same time strive for them. Now the target level is set strictly at a mark of two percent, but under certain conditions it can be exceeded.
Inflation in the eurozone rose to a record high level two years after the countries began to remove coronavirus restrictions. Consumer prices in May grew by two percent in annual terms, which exceeded economists’ forecasts.