GERMAN INFLATION NEARS 50-YEAR HIGH
CONSUMER PRICES ARE SURGING IN EUROPE’S TOP ECONOMY.
The German statistics office Destatis has reported another jump in inflation in May as food and energy prices continue to climb. Annual inflation in Europe’s top economy has reached 7.9%, the highest level since the 1973 oil crisis.
The surge comes amid the conflict in Ukraine and the unprecedented sanctions imposed on Russia. Soaring energy prices have had a considerable impact on inflation since late February, when Russia’s military operation in Ukraine began, Destatis said on Monday.
“Another factor with an upward effect on prices is interruptions in supply chains caused by the Covid-19 pandemic,” the agency said.
Energy prices reportedly rose 38.3% in May year-on-year, while food prices posted an 11.1% leap.
Consumer prices in May increased 0.9% by national standards and 1.1% by EU-harmonized standards, according to the data. Destatis is expected to publish its final results for the month on June 14.