Germany’s inflation rate is at its highest level since 1973
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According to preliminary estimates, Germany’s annual inflation rate rose to 7.9 percent in May 2022, the highest since the winter of 1973 and above market expectations.
Germany’s consumer price inflation rate is expected to increase to 7.9 percent in May 2022, up from 7.4 percent in April, the highest since the winter of 1973/1974 and higher than market expectations of 7.6 percent.
The main source of upward pressure should be energy product prices (38.3 percent vs. 35.3 percent in April), which have risen significantly since the Ukraine conflict began.
Food inflation is expected to rise to 11.1 percent (up from 8.6 percent), while service inflation is expected to rise to 2.9 percent (up from 3.2 percent).
This indicates that price pressures in Europe are increasing, though they have not yet reached their peak.
Consumer prices are expected to rise 0.9 percent on a monthly basis in May.
This report’s information was first seen on TradingEconomics; to read more, click this link.
