What is the inflation rate in Germany?
According to official Government data, the inflation rate in Germany hit 10% in September 2022, versus September 2021. It’s the highest year-on-year increase in consumer prices ever recorded in the country.
Germany’s record inflation is mainly due to soaring energy prices caused by gas and oil shortages. Now there’s seemingly no end in sight following the Nord Stream gas pipeline attack.
It’s those unprecedented energy prices that have renowned German credit analyst, Dr Marco Metzler, doubting the offical inflation data.
“According to Destatis.com, energy prices rose by 43.9 percent in September compared to the previous year. The household energy spending is weighted with 10 percent of the household’s income. However, with the gas price hyperinflation of up to 200 percent from last year September, the energy spending of households has a weight of more than 50 percent,” said Metzler.
“To compensate for this increase people have to liquidate savings or raise further debt. Therefore, the real inflation rate for the lower and middle-class household in September 2022 is not 10 percent but close to 100 percent.”
Is inflation in Germany actually hyperinflation?
According the Metzler, who is the Founder & CEO at FMPC Consulting AG, the answer to this question is obvious.
“The public inflation rate in Germany is currently at its highest rate, the worst thing is that this data is fake,” he says.
“The real inflation rate is near 100 percent which means total hyperinflation… Europe’s biggest economy is heading toward a catastrophic recession.”
“Once people lose their last hope, the government will have to promise something. Otherwise, people will create chaos because their livelihoods are on the line. People will then suffer when the harsh winter hits… If the government has no emergency plans in place, then we will see massive consequences.”
Last week, German Chancellor, Olaf Scholz revealed a energy rescue package worth US$198 billion, the equivalent to around 5% of the country’s GDP.
The package, which is still light on details, include a gas price brake to even the playing field between household and business gas prices and the wholesale market, along with tax cuts on gas.
Germany has also delayed plans to decommission the country’s three remaining nuclear power plants at the end of this year.