German inflation rate jumps to 7.9% in May
Berlin, May 30: Germany's inflation rate reached 7.9% in May, according to data published by the German statistical agency Destatis. The preliminary figures were based on the consumer price index and compared with prices from May 2021.
May's inflation was thus up by 9% over the record-breaking rate record in April this year. It marks the highest rate of inflation since German reunification and a level similar to that seen in 1973/1974 following the oil crisis.
The statistics agency pointed to the war in Ukraine and the rising energy prices as being behind the record level of inflation. Energy prices increased by 38.3% over the same time last year, while the price of food increased by 11.1%.
"Since the beginning of the war in Ukraine, the cost of energy has noticeably increased, substantially affecting the high rate of inflation," the Destatis statement said.
As with most parts of the world, the rate of inflation in Germany has been rapidly increasing, leaving consumers facing much higher prices for a large range of products and services, thus lowering their purchasing power. Analysts have predicted that Europe as a whole will see an average rate of inflation of 6% in 2022.