German inflation reaches highest level in more than 40 years


Germany’s annual inflation rate rose in April, with the highest reading since the autumn of 1981, according to final data released on Wednesday by the German statistical office Destatis.

Consumer prices rose 7.4% year-on-year, measured by national standards, in line with the first estimate and the forecasts of economists consulted by the Wall Street Journal. They increased by 7.8% year-on-year according to harmonized European Union standards, also in line with forecasts.

Since Russia’s attack on Ukraine, the prices of natural gas and mineral oil products have risen sharply again and have had a considerable impact on the high rate of inflation, Destatis said.

An equally high inflation rate in Germany was last recorded in 1981, when mineral oil prices rose as a result of the Iran-Iraq war, the statistics office said.

Other factors that drive up inflation include delivery bottlenecks due to the Covid-19 pandemic and significant increases in energy prices as the economic recovery began, Destatis said.

Consumer prices rose by 0.8% compared to national standards and by 0.7% according to harmonized standards in the EU, both in line with forecasts and confirming the first estimate.

Write to Maria Martinez at maria.martinez@wsj.com



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