Germany's annual inflation hits highest level in more than 70 years

Germany's consumer price index rose 10.4% year-on-year in October by national standards, hitting the highest reading since December 1951, according to final data released by the German Statistical Office (Destatis) last week. week.

"The main causes of high inflation continue to be the huge price increases of energy products, but the prices of many other goods and services are also increasing", said the president of Destatis, Georg Thiel.  "The rise in food prices is now particularly noticeable for households," he added.

Consumer prices rose 11.6% on the year by EU standards, up from 10.9% in September, the Office said.

While consumer inflation has been bad, it has been much worse for producers.  German producer prices reached an impressive 45.8% for the year.

The continued inflationary pressure that has been eating away at Europeans' currency purchasing power, which has been felt across a range of sectors: energy prices are up 132% on the year, heating oil prices are up 84%, while food items like butter and coffee were up 72% and 32% respectively.

German industry has reduced output in recent months, largely unable to operate profitably with current energy prices.  And, at least in the short term, the population will continue to suffer from the devaluation of the currency's purchasing power.