Inflation in Germany remains at historically high levels. The first February CPI inflation, announced today, increased by 0.9% monthly, causing the annual level to rise to 5.1%. Inflation in Germany dropped to 4.9% in January after hitting a record high of 5.3% in December. Energy costs have the largest share in the rise in inflation.
In Italy, it increased to 5.7% and peaked after November 1995.
In late February, Russia’s attack on Ukraine and many countries, including Germany, imposing sanctions on Russia, accelerated the rise in energy and commodity prices in global markets. Germany was preparing to close its coal plants for the green economy, but although it has not been clarified yet, Germany has announced that they may delay the cancellation of the plants to reduce its dependence on Russia.
There have been great increases in the prices of many products that Russia distributes, such as natural gas, coal, aluminum, palladium, wheat, corn and soybean, in the last month. The increase in prices from food to energy items is expected to increase both global inflation and Germany and beyond.