Inflation in Germany has reportedly risen to its highest level since reunification in 1990, with consumer prices rising by 7.9% on average in 2022 compared to the previous year.
This is according to the Federal Statistical Office and it is also in comparison to consumer prices in 2021 which had risen by an average of 3.1%.
Energy and food have been the main price drivers for months.
The Russian invasion of Ukraine and supply bottlenecks have exacerbated an already tense economic situation following the global pandemic.
Consumers in Germany had to pay 24.4% more for energy in December than a year earlier. Food prices rose by 20.7% within a year.
High inflation rates reduce the purchasing power of consumers and erode income gains as people can afford less for each euro they spend.
Reports say inflation rates at the current level have never been seen in reunified Germany.
Before reunification in 1990, following the fall of the Berlin Wall, the strongest average increase in a year was recorded in 1951, when it was 7.6%. However, the method of calculation has changed over time.
Although the overall inflation rate reached record highs last year, it slowed in December, with consumer prices 8.6% higher compared to the same month last year, the Federal Statistical Office further announced.
Economists assume that this will dampen the rise in inflation in 2023.
