Inflation in Germany is increasing in October: Consumer prices at a new high!

Inflation in Germany is increasing in October: Consumer prices at a new high!

Wiesbaden, Deutschland - Wiesbaden, the city where numbers count! There is a shock message in October: inflation in Germany surprisingly increases to 2.0 percent compared to the previous year! The Federal Statistical Office reports that the prices for food in particular have attracted 2.3 percent and services by a whopping 4.0 percent. While energy prices have fallen comparatively by 5.5 percent, the question remains: Why do German consumers have more difficult to spend the money?

The dark forecast for consumption cannot be ignored. The consumer mood is slightly recovered, but remains at a dangerously low level! The GfK consumer climatedex reports on a savings rate that has sacrificed at 11.1 percent in the first half of the year at the highest level in one year. Even higher wages cannot really make people spend. Many prefer to choose the safe way and save! Private consumption is now a trembling pillar, while the German economy surprisingly grew in the third quarter.

Federal Government estimates the decline in inflation

Despite all of this, there is a bright spot preliminary from the Federal Government! With a decline in the inflation rate by the end of the year, it expects a shocking 2.2 percent, a drastic improvement compared to the 5.9 percent of the year 2023. But the IFO Institute points to a further increase in inflation: increasing raw material prices and wages could attract prices again, especially for food and services. According to an IFO expert, the two percent brand of the European Central Bank could soon be back in sight!