Inflation down in MV but higher than nationwide
Inflation in Mecklenburg-Vorpommern fell to 4.2 percent in October - but it is still well above the national figure of 3.8 percent. This was announced by the State Statistical Office in Schwerin on Tuesday. In September, consumer prices in the north-east were still 4.8 percent higher than in the same month last year.
According to the office, food was once again one of the main price drivers. They increased by 5.5 percent compared to October 2022, while alcohol and tobacco products rose by as much as 8.1 percent. Prices in the hospitality industry rose by seven percent. In the food sector, price increases for sugar and confectionery (up 12.8%), mineral water, soft drinks and juices (up 11.8%), fruit (up 10.3%), bread and cereal products (up 9.5%) and fish (up 9.3%) stood out in particular. In contrast, butter is currently significantly cheaper than a year ago (down 31.5%).
The price of energy only rose by 1.6% year-on-year - compared to September, prices actually fell by 0.7%. Nationwide, energy prices fell by 3.2%.
However, electricity (up 20.5% year-on-year) and gas (up 6.4%) became noticeably more expensive in MV. Heating oil prices, on the other hand, fell compared to both September (down 1.6%) and October 2022 (down 26.5%). Prices for district heating remained constant compared to the previous month and fell by 15.4% compared to the same month last year. According to the office, prices at the pump fell by 1.6% compared to September and by as much as 4.9% compared to October 2022.
According to economists, inflation is likely to weaken further by the end of the year. Leading economic research institutes recently predicted that the inflation rate in Germany will fall to 2.6% next year after an expected average of 6.1% in the current year.
The European Central Bank (ECB) has countered the increased inflation in the eurozone and in Germany with ten interest rate hikes in a row to date. The monetary authorities have recently stopped tightening interest rates. Higher interest rates make loans more expensive, which can curb demand and counteract high inflation rates. The ECB believes that it has achieved its goal of stable prices with inflation of 2.0% in the eurozone in the medium term.
Despite the decrease in inflation in Mecklenburg-Vorpommern, consumer prices are still higher than last year, impacting the purchasing power of many residents. This trend in prices has led some consumers to seek out affordable alternatives for certain goods, such as significantly cheaper butter compared to last year.
Source: www.dpa.com
