Official data on Thursday indicated that consumer prices in Germany rose during the month of October at the quickest pace since 1993, amid the rise in the price of energy resources.

The annual inflation rate had been accelerating for 3 months prior to October, with energy prices rising by 18.6% according to the Federal Statistics Agency, Destatis.

In a statement, Destatis listed the reasons for spiked inflation rates since July 2021, including the reduction of value-added tax and the introduction of the carbon dioxide pricing system into effect since January 2021.

Official estimates indicate that the German government expects inflation to rise by an additional 3 percent in 2021, before any signs of decline in the coming years.

The increase in 2021 is likely to be the largest since 1993, when the inflation rate reached 4.5 percent. Inflation in Germany is expected to fall to 2.2 percent in 2022 and 1.7 percent in 2023, according to the German government.

Rising inflation is only one of a number of concerning indications for the German economy in recent months, as supply chain disruptions and shortages of basic commodities such as metals and paper are also harming the economy's recovery following COVID-19.