The Federal Statistical Office said that consumer prices soared by an average of 3.1 percent in 2021 compared to 2020. This comes after modest inflation rates in previous years.
The skyrocketing price is driven by the global increase in energy prices during 2021.
Europe’s largest economy was not exempt from the effects of the energy price spike, with household energy prices increasing by over 22 percent in one year by November 2021.
For consumers, this means they get less for their money and economists predict that the poorest will be hardest hit by these increases.
Economists are not holding out much hope for a rapid decrease in the inflation rate.
January 2021 saw the end of a temporary VAT cut, meaning regular rates were reinstated at the start of last year.
This meant goods and services were pricier than before for consumers.
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