Comment by Ulrike Karsten, DWS

"Following the expiry of the 9 euro ticket and the gasoline price discount at the end of August, German inflation rate was expected to climb above the 10 percent mark in September 2022. It now reaches 10.9 percent in the harmonized rate. In the national index, an increase of exactly 10 percent was achieved. For food, the barometer continues to rise. Prices are now 18.7 percent higher than last year, which is inevitably felt in every purchase."

"The increase in the energy component was 43.9 percent, which was even lower than we expected. In some German states, such as North Rhine-Westphalia, gas prices rose by only 2.7 percent month-on-month. A large proportion of the price increases already announced by the utilities therefore do not yet appear to have found their way into the statistics. The situation is similar for electricity. But this is only a question of time. All in all, it seems that the peak of the inflation trend has not yet been reached. Rates of over 12 percent cannot be ruled out in the coming winter months. This increases the pressure on the European Central Bank to raise key interest rates again by 75 basis points at its October meeting."