Energy prices are starting to weigh on SMEs

Energy prices are starting to weigh on SMEs
Energy prices are starting to weigh on SMEs

Inflation rose again in Germany in August, to 7.9% year on year, after two months of slowdown, still driven by soaring energy prices in the wake of the war in Ukraine, according to sources. provisional figures released on Tuesday.

The price index gained 0.4 points year-on-year compared to July, and returned to its May level, according to the statistics institute Destatis.

The harmonized price index, which serves as a reference by the European Central Bank, rose by 8.8%.

This is enough to put pressure on the monetary institution, determined to bring inflation back within the nails of its mandate, to 2%, and which should to do so significantly raise its rates at its next meeting on September 8, after a first not in July.

In detail, prices in Germany remain driven by the continued explosion in energy prices, caused by the war in Ukraine, at 35.6% year on year in August, against 35.7% in July and 38, 0% in June.

Food prices also continue to climb, under the effect of war and droughts, to 16.6% in August, after 14.8% in July.

Goods prices increased by 14.7%, ie 0.8 points more than in July.

“The short phase of price relaxation in June and July (…) is already ancient history”, summarizes Elmar Voelkler, analyst for LBBW.

This increase puts an end to two months of decline made possible by temporary government measures to reduce household energy bills.

In June, Germany introduced an exceptional tax reduction on fuel and a ticket at 9 euros per month valid on all public transport, excluding high-speed lines.

Most of these measures will end in September.

And in October, a tax on gas intended to avoid the bankruptcy of German energy groups must come into force.

Result: experts fear a further explosion in prices this fall.

Bundesbank President Joachim Nagel said he expects “a possible 10% inflation during the autumn months”, a first since the 1950s.

The rise in prices in August “is only the start of an inflationary autumn”, abounds Mr. Voelkler.

This article has been published automatically. Sources: ats / awp / afp

The article is in French

Tags: Energy prices starting weigh SMEs

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