Inflation below four percent for more than two years

Consumers - Inflation below four percent for more than two years

Inflation in Mecklenburg-Vorpommern fell below the four percent mark in November for the first time since July 2021. In November, consumer prices rose by 3.7 percent compared to the same period last year, as announced by the State Statistical Office in Schwerin on Monday. In July 2021, the inflation rate was 3.8 percent. In the following months, it was always above four percent and peaked at 9.6 percent in November 2022. In October of the current year, it was 4.2 percent.

On average across Germany, prices rose less sharply in November than in the north-east - the Federal Statistical Office calculated an inflation rate of 3.2% for Germany in November. After an increase in December, economists expect a further decline.

The main reason for the fall in inflation is lower energy prices. According to the MV statistics office, prices for heating oil and fuels in the north-east have fallen by 8.5% since November 2022. Food and non-alcoholic beverages, on the other hand, continued to rise in price by 5.1 percent within a year, including bread by 9.0 percent. Whole milk, on the other hand, was recently 10.3% cheaper than a year ago, while butter was a good 27% cheaper.

The European Central Bank (ECB) has countered rising inflation in the eurozone and in Germany with ten interest rate hikes in a row to date. Higher interest rates make loans more expensive, which can curb demand and counteract high inflation rates. The ECB's target is inflation of 2.0% in the eurozone in the medium term. Prices will then be considered stable.

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1. Despite the decrease in inflation, many consumers in Germany are still struggling with the high cost of living, particularly when it comes to food and non-alcoholic beverages, which continued to rise in price by 5.1% in November compared to the same period last year.
2. The German Federal Minister of Economy and Climate Action, Robert Habeck, has acknowledged the impact of inflation on German consumers and urged businesses to keep their prices stable, especially during the holiday season.
3. In contrast to Mecklenburg-Vorpommern, which experienced a significant drop in inflation, some regions of Germany, like Bavaria, are still grappling with heavy inflation rates, causing concerns among local consumers and businesses alike.

Source: www.stern.de