German inflation was on the rise in September, coming in at 10.9%, up from 8.8% in August, according to the latest data released from the Federal Statistical Office (Destatis).
The numbers beat market expectations, which were for 9.4%, and touched a record high since the euro was created in 1999. Skyrocketing food and energy costs were seen as the primary cause of the rising prices.
In a press release, the agency said, “Energy prices were 43.9% higher in September 2022 than in September 2021. There was also an above-average rise in food prices by 18.7% from the same month of the previous year.”
The German government announced on Thursday it would enact a €200 billion ($194 billion) package to “cushion rising energy costs and the most severe consequences for consumers and businesses.” As part of the plan, the government will implement an emergency price freeze on gas and electricity, and scrap a pending gas levy on consumers, to allay further price increases. The plan is being financed by new borrowing.
Destatis will publish detailed information on the new numbers, including its final estimate on the September level of inflation on October 13.