Many thanks to Hellequin GB for translating this article from Epoch Times:
The rude awakening is yet to come!
German inflation rate over four percent mark
Fueled by high energy prices, inflation in Germany exceeded the four percent mark for the first time in almost 28 years.
Consumer prices rose in September compared to the same month last year by 4.1 percent, as the Federal Statistical Office announced on the basis of a preliminary calculation. The Wiesbaden statisticians last determined a four with a decimal point in December 1993 at 4.3 percent.
Higher inflation weakens the purchasing power of consumers because they can then buy less for one euro than before. Rising inflation rates are also bitter for savers who, for example, park money in low-interest overnight money accounts. The bottom line is that your balances lose their value.
According to preliminary data, consumer prices remained unchanged in September compared with August. Inflation has been fueled by rising energy prices for months. In the course of the economic recovery after the Corona crisis, the demand for crude oil has increased significantly, which is driving prices up.
In Germany, since January, €25 per tonne of carbon dioxide (CO2) that is created when diesel, gasoline, heating oil and natural gas are burned have come due. Both are causing energy prices to rise.
Inflation rate of five percent possible
In September, consumers had to pay 14.3 percent more for household energy and fuels than a year earlier, according to preliminary data. Food prices rose 4.9 percent. Services cost 2.5 percent more than in September 2020.
The withdrawal of the temporary VAT cut is now having a full impact on the inflation trend. In order to stimulate consumption during the Corona crisis, the federal government had temporarily reduced VAT from July 1, 2020 to December 31, 2020. The regular VAT rates have been in effect again since January 2021, so goods and services are tending to become more expensive again.
Inflation rates of around five percent in Europe’s largest economy are considered possible this year. However, economists see the rise in inflation as a temporary phenomenon.
They currently do not see the increased risk of a prolonged or even out of control price spiral. In the coming year, inflation is likely to weaken again, in their opinion.
“As long as the wage agreements remain moderate, there is not much to suggest that we run into permanent inflation,” said Veronika Grimm recently, for example.
Afterword from the translator:
The re-invention of inherited serfdom. I’m making an educated guess here, but I’m pretty sure that Klaus Schwab already has an erection and is drooling with anticipation at the number of people that will perish and be buried deeper in debt-slavery for generations to come.