The end of a VAT holiday introduced by the German government to mitigate the impact of pandemic lockdowns on the economy and the rise in the price of oil explained some of the increase, according to federal statistics agency Destatis.
The August 12-month inflation figure was 0.1 percentage point higher than in the previous month, and the highest value in Europe’s top economy since December 1993, when it came in at 4.3 percent.
“The current increase is likely to remain temporary,” said Fritzi Koehler-Geib, chief economist at public lender KfW.
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