BERLIN (dpa-AFX) - Germany's consumer price inflation in 2021 hit its highest level in almost 30 years mainly due to the high monthly inflation rates in the second half of the year, Destatis said on Wednesday.
Consumer prices increased 3.1 percent in 2021 after rising 0.5 percent in 2020. A higher year-on-year rate of price increase than in 2021 was last measured in 1993, when prices were up 4.5 percent.
'There are various reasons for the price development in 2021, which include base effects caused by the low prices in 2020,' Georg Thiel, President of the Federal Statistical Office said.
'Especially the temporary reduction of value added tax rates in the second half of 2020 and the sharp decline in mineral oil product prices in the previous year had an upward effect on the current overall inflation rate', said Thiel.
In December, consumer price inflation rose to 5.3 percent from 5.2 percent in November. The rate came in line with the preliminary estimate published on January 6. A higher inflation figure was last measure in June 1992, at 5.8 percent.
Energy prices exceeded the level of the previous year by 18.3 percent in December. Excluding food and energy prices, inflation was 3.7 percent.
EU harmonized inflation slowed to 5.7 percent in December, in line with estimate, from 6 percent in November.
On a monthly basis, consumer prices were up 0.5 percent, as initially estimated. Likewise, the harmonized index of consumer prices moved up 0.3 percent, the same rate as in November and matched the flash estimate.
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