The people in the U.S. and Germany must have followed the news yesterday with horror that their purchasing power is sinking faster than it has for a long time. Inflation in the U.S. has risen an incredible 6.8% YoY, the highest increase in 40 years. In Germany, inflation rose 5.2% YoY which is the highest increase in 30 years.
Especially in the areas of food, energy, and vehicles, prices have soared since the outbreak of the COVID pandemic.
Energy prices in the U.S. rose 33.3% in November compared to a year ago. Fuel prices rose 58.1%, gas by 25.1%, and electricity by 6.5%.
In Germany, the Federal Statistical Office reported a 22.1% increase in energy prices in November compared to last year. The price for heating oil has doubled by 101.9%! Fuels have increased by 43.2%. Electricity increased by 3.1% and natural gas by 9.6%. Overall, household energy increased by 12.2%.
Food prices in the U.S. have increased by 6.8% compared to the previous year. Meat products, in particular, soared, with beef up 20.9%, pork up 21%, and chicken up 9.2%.
In Germany, food prices rose by 4.5% year on year in November. The Federal Statistical Office reports an increase of 11.9% for edible fats and oils and 6.4% for dairy products and eggs. Meat and meat product prices rose by 4.7% in November compared with a year earlier.
The U.S. Bureau of Labor Statistics reports used car prices rose 31.4% in November from a year earlier. New car prices are up 11.1% and the price of rental vehicles is up 37.2%.
In Germany, a general vehicle price increase of 7.7% was reported.