Higher energy prices push inflation up in Germany
Clean Energy Wire
Higher energy prices have pushed inflation up in Germany. On average, retail prices were 1.7 percent higher in January compared to a year earlier, after an inflation rate of 1.5 percent in December, according to Germany's statistical office Destatis. Households had to pay 3.4 percent more for energy and fuels. At the end of the year, energy had still been a little cheaper than in December 2018. Price comparison website Verivox said earlier this month that average household electricity prices in Germany reached a new all-time high in January, following a year-on-year increase of 4.1 percent. It warned prices look set to rise further in the course of the year because government's measures to lower the price of power will only come into effect in 2021 at the earliest.
Power prices in Germany are among the highest in Europe, not least due to the costs arising from the launch of renewable energy sources. But many customers continue to support the country's energy transition regardless. The average power price for households and small businesses in Germany stood at 30.43 cents per kilowatt hour (ct/kWh) in 2019, according to the economy and energy ministry (BMWi). Politically determined components such as taxes, levies and surcharges, accounted for more than half of the price (53%) in that year, an analysis conducted by the German Association of Energy and Water Industries (BDEW) has found.
