The Federal Statistical Office (Destatis) has released a provisional press release stating that the inflation rate in Germany is expected to be +7.4% in March 2023. The inflation rate is measured as the change in the consumer price index (CPI) compared to the same month a year earlier. This figure is significantly lower than the +8.7% recorded in January and February 2023.
Destatis reports that consumer prices are expected to increase by 0.8% compared to February 2023. Additionally, the Harmonised Index of Consumer Prices (HICP) is expected to increase by +7.8% on the same month a year earlier, with a +1.1% increase on the previous month.
The inflation rate has been heavily impacted by rising energy and food prices since the start of the war in Ukraine. Food prices in particular have continued to show above-average growth, with a +22.3% increase compared to the same month in the previous year. In contrast, the increase in energy prices has slowed considerably, with a +3.5% increase compared to March 2022 when Russia attacked Ukraine (February 2023: +19.1% on February 2022). Destatis notes that the Federal Government’s third relief package has also contributed to the development.
Consumers can use the Personal Inflation Calculator of the Federal Statistical Office (only in German) to adapt their monthly consumption expenditure on individual product groups and calculate their personal inflation rate.
While this news is concerning for consumers, it is important to remember that inflation rates are subject to change and can be impacted by various external factors. It is recommended that consumers keep track of their personal inflation rate and adjust their spending accordingly.
The press release does not mention any direct impact of crypto on the inflation rate in Germany. However, it is worth noting that some investors have turned to cryptocurrencies like Bitcoin as a potential hedge against inflation due to its limited supply and lack of government intervention. Therefore, it is possible that the high inflation rate in Germany could lead to increased interest in crypto as an investment option for some individuals. However, it is important to remember that cryptocurrencies are highly volatile assets and investing in them carries significant risk.