German inflation reaches highest in nearly 50 years

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Germany’s annual inflation rate has risen faster in May than in April, beating forecasts and the highest reading since December 1973, according to preliminary data released Monday by the U.S. Bureau of Investigation. German statistics Destatis.

Consumer prices rose 7.9% year-on-year as measured by national standards, compared to 7.5% forecast by economists in a Wall Street Journal survey. They increased by 8.7% per year according to harmonized European Union standards, above the economists’ forecast of 8.1%.

An equally high rate of inflation in Germany was last recorded in the winter of 1973, when mineral oil prices rose as a result of the first oil crisis, the statistics office said.

Since Russia’s attack on Ukraine, energy prices have risen sharply and have had a significant impact on the high rate of inflation, Destatis said. Energy prices rose 38.3% year-on-year in May.

Food prices also rose above average, up 11.1% year-on-year, Destatis said.

Other factors driving up inflation are supply chain problems due to the pandemic and significant price increases as the economic recovery began, Destatis said.

Consumer prices rose 0.9% monthly according to national standards and 1.1% according to harmonized standards in the EU. Economists surveyed by the Wall Street Journal expected prices to rise 0.5% a month according to national standards and 0.4% according to harmonized standards in the EU.

The final results will be announced on June 14.

Write to Maria Martinez at

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