According to economist Holger Schmieding from Berenberg, one of the reasons is a change in value added tax. It was reduced in Germany due to the pandemic and the related crisis from July to December last year. However, the old rates of this tax have returned since the New Year.
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In other words, the measurement currently compares the prices of goods that are subject to a higher tax rate with products that have been taxed at a lower rate.
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Another factor is higher oil prices and the resulting increase in fuel prices. In addition, due to the current development of the pandemic, people have better opportunities to travel, which leads to more expensive tours.
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In addition, prices were affected by growing demand related to the reopening of services after the lockdown. “Of course, people want to go to restaurants and pubs again,” added Schmieding.
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In North Rhine-Westphalia, for which Destatis published a more detailed analysis, hospitality prices rose by four percent. Back in June, the year-on-year increase was only 2.1 percent.
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