Price shock in Germany: The current inflation rate is 2.2 percent. Last time, the increase four and a half years ago was so high.
Photo: iStock
Anyone who wonders where all the money has been left lately - here you have the answer: In Germany, the inflation rate has risen sharply . This is due to increased energy and food prices . These have increased in two federal states by 2.0 to 2.5 percent and we have less of our money. The Federal Statistical Office therefore derived from the price rise, an inflation rate of 2.2 percent, from Reuters surveyed economists estimated the rate of inflation to 2.1 percent .
What is actually an 'inflation' and what does the 'inflation rate' say?
Inflation is the increase in the price level . A well-known example is the quiet increase in prices after the change from D-Mark to Euro: instead of paying 50 marks for a new sweatshirt, one suddenly had to pay the same amount in euros. Because prices for goods and services increase in this way permanently, the purchasing power of money is reduced - we get less for the same amount. How much less we get describes the inflation rate . This compares current prices with those of the previous month (eg prices for milk 2016 vs. prices for milk 2017) and is calculated from the difference in prices.
The current inflation is mainly the result of a rise in prices for gasoline and diesel . In North Rhine-Westphalia, prices rose by 16.1 percent compared with the previous year, and fuel oil even increased by 47 percent . Also food prices were increased significantly.
If the estimate proves true, the prices are considered by the European Central Bank as 'unstable'. The ECB rates rates of up to 2 percent as 'stable' - a figure that was still valid in January. At that time, the inflation rate was 1.9 percent. According to the EU Commission, the price increase will not slow down so quickly, which is why we all have to adjust to a full-year full-year 2017 . Maybe a good time to talk to the boss again about a salary increase.
