German Inflation Hits Five-Decade High

Germany’s inflation rate, measured by the annual change in the consumer price index, rose 7.9% in May 2022, bringing the inflation rate to an all-time high for the third consecutive month since German reunification.

The main reason for higher inflation is still higher energy prices, but George Thiel, head of the Federal Statistical Office Destatis said they are also seeing an increase in the prices of many other commodities, especially foodstuffs.

In March 2022, the inflation rate was stable at 7.3%, and in April 2022 at 7.4%.

The Federal Statistical Office also reported that consumer prices in May 2022 increased by 0.9% in April 2022.

“The increase in energy prices observed already before the war in Ukraine has markedly accelerated since the war started and it has a substantial impact on the inflation rate,” the statistics agency said. Other factors such as supply-chain bottlenecks or marked price increases at upstream stages in the economic process are also contributing to the upswing in prices, it said.