According to data released today by Destatis, Customer Price Inflation increased by 0.5 percent on monthly basis. On annual basis, it was registered as 4.5 percent, in line with market forecast.
 



Consumer prices hit the highest level since October 1993 in Germany. Change on the same period a year earlier was the highest in transport: 12.9 percent. Food and non-alcoholic beverages increased by 4.4, Housing, water, electricity, gas and other fuels increased by 3.7, and Furniture, lighting equipment, appliances and other household equipment also rose by 3.7.

On monthly basis, transport and Housing, water, electricity, gas and other fuels showed the biggest increases by 2 percent and 0.8 percent, respectively. On the other hand, Recreation and culture,  health and Communication declined by 0.9, 0.3, and 0.1 percent, respectively.
Crude oil prices, which remained high in international markets, especially natural gas, were the main determinants of consumer inflation reaching the top. In addition, transportation problems, supply bottlenecks and cost-effective liquidity conditions due to the pandemic affected the housing and household goods groups.

Although the base effect, which will come into effect by 2022, will have a moderate impact on the inflation, we believe that supply bottlenecks will make it difficult for price pressure to be a temporary factor.