(Destatis) Germany’s harmonized index of consumer prices rose by 8.7% in May from the prior year, marking the highest consumer prices since the winter of 1973/1974. The inflation was higher than estimates of an 8.0% gain.
On a monthly basis, the harmonized index saw a surge of 1.1%, with the rise connected to the soaring food and energy prices. Energy prices saw a gain of 38.3% in May from last year, while food prices were up by 11.1%.
Without adjustments, Germany’s consumer price index rose by a monthly 0.9% and annual 7.9% in May.
Berenberg Bank chief economist, Holger Schmieding, expects further inflation pressure as supply bottlenecks still persist. The analyst expects the situation to calm down from autumn.
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