Inflation in Germany has weakened slightly for the first time since July, with consumer prices rising by 10% in November compared to the same month last year, the Federal Statistical Office announced in an initial estimate on Tuesday.
Previously, the annual rate of inflation had risen for three months in a row, reaching 10.4% in October. Economists do not see the decline as a reason to give the all-clear, however.
Soaring inflation has been driven by energy and food prices in recent months.
According to preliminary figures, energy costs rose by 38.4% in November compared to a year earlier. In October, an increase of 43% was recorded. Compared to October, consumer prices fell by 0.5% overall.
The comparatively high inflation is leading to a loss of purchasing power and is increasingly devaluing salaries. In the third quarter, incomes were 2.3% higher in nominal terms than in the same period of the previous year.
However, the increase was eroded by higher consumer prices. The bottom line was a real wage loss of 5.7%. This was the highest decline since the figure started being recorded in 2008.
People had already suffered real wage losses in the previous three quarters. Values accelerated from -1.4% in the final quarter of 2021 to -1.8% at the beginning of the year to -4.4% in the second quarter of 2022.
Many people are tightening their belts because of rising prices. According to a survey of 10,000 people conducted by market research company Nielsen IQ, showed that around half of consumers are only buying products that they really need.
According to economists, there is no sign of a radical easing of inflation in the near future.
The inflation rate is not expected to fall significantly until spring, when the gas and electricity price brakes will take effect and oil’s contribution to inflation will start to wane, Commerzbank’s chief economist Jörg Krämer said.
dpa
