German inflation falls to lowest level since start of Russia-Ukraine conflict

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BERLIN, Oct. 11 (Xinhua) -- Year-on-year consumer price inflation in Germany in September dropped to 4.5 percent, the lowest level since the start of the Russia-Ukraine conflict, the Federal Statistical Office (Destatis) said on Wednesday.

Inflation "remains high," Destatis President Ruth Brand said in a statement, adding that "consumers are still clearly feeling the higher food prices." At 7.5 percent, food remained the main inflation driver, although the increase in food prices was slower than in August.

At more than 10 percent, confectionery products, such as sugar and honey, as well as cereal products recorded the greatest increases, while butter and edible oil prices fell significantly.

For some foodstuffs, price increases of up to 80 percent are still being observed, according to the Federation of German Consumer Organizations (VZBV).

Consumers "feel let down with the constant price increases in the supermarket," VZBV Executive Director Ramona Pop said on Wednesday, calling on the government to "bring all the relevant players to the table in a price summit and finally work out options for action."

Supported by a sharp 26.0 percent drop in the price of heating oil, the rise in energy prices slowed to 1 percent in September, according to Destatis. The price increase for electricity, on the other hand, remained high at 11.1 percent.

According to a recent analysis by the comparison company Verivox, Germany has the highest consumer prices for electricity in the world, more than 2.7 times the international average. Even considering its comparatively high purchasing power, the country has more expensive electricity than any other G20 country.

Due to high inflation, one in six people in Germany can barely cover their everyday expenses, according to a YouGov study for Postbank published on Monday. More than one in three already had to draw on savings.

Consumers in Germany are becoming increasingly cautious, with the propensity to save in September reaching the highest level in more than 10 years, according to the latest monthly consumer climate study by the market research institute GfK.

"The chances of a recovery in consumer sentiment this year have probably fallen to zero," GfK expert Rolf Buerkl said in late September. "Private consumption will not be able to positively contribute to overall economic development this year." Enditem

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