Annual inflation in Germany rises to its highest level in May

Inflation in Germany rose to 7.9 per cent in May from 7.4 per cent a month earlier, surpassing a record high for the third time in a row.

These are the final data of the Federal Statistics Office, which was published on June 14. Statistics correspond to preliminary calculations, according to Russia's online business newspaper Kommersant.

"The inflation rate in united Germany shows a maximum for the third month in a row. The main reason for high inflation is still the rise in energy prices,"  the head of the Federal Statistics Office, Georg Thiel, said.

"We are also seeing an increase in prices for many other goods, especially food. The last time such a high level of inflation was observed was in the winter of 1973-1974 when oil prices rose sharply as a result of the oil crisis," he added.

After the outbreak of hostilities on the territory of Ukraine, energy prices have increased especially, this is what largely affects inflation. For example, natural gas prices increased by 55.2 per cent compared to May 2021, and fuel prices by 41 per cent. Without taking into account the increase in the cost of energy resources and food, inflation would be 3.8 per cent, the report says.

Another factor in the growth of inflation is the disruption of supply chains amid the coronavirus pandemic.

According to the forecast of the German federal bank Bundesbank, inflation will be at the level of 7.1 per cent by late 2022.