The inflation rate in Germany, measured as the year-on-year change in the consumer price index, is expected to be +5.3% in December 2021. Compared with November 2021, consumer prices are expected to increase by 0.5%. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that, on an annual average, the inflation rate is expected to stand at 3.1% in 2021. {table} There are a number of reasons for the high inflation rates since July 2021, which include base effects due to low prices in 2020. In this context, especially the temporary value added tax reduction and the sharp decline ... (full story)