Inflation in Germany hits new-high level in around 5 decades

(MENAFN) According to the Federal Statistical Office (Destatis), consumer prices in Germany rose 7.9 percent YOY in May, the highest rate in over 5 decades.

As per Destatis, a comparable high rate was last observed in Germany in the winter of 1973/1974, when mineral oil prices had risen considerably owing to the first oil crisis.

For months, practically all sectors of Europe's largest economy have seen record-high inflation.
Mounting energy values motivated by the Russia-Ukraine war had a "substantial impact on the inflation rate," Destatis highlighted.

Energy prices increased by 38.3 percent. According to Destatis, heating oil costs than doubled, while natural gas and motor fuel prices increased by 55.2 percent and 41 percent, respectively.
Germany's government implemented many steps to mitigate the consequences of rising energy prices, including a fuel tax drop, increased mileage allowance for long-distance commuters, a public transportation discount ticket, and a one-time energy allowance of 300 euros (314 U.S. dollars).

Delivery bottlenecks resulting by disruptions in supply chains resulting by the COVID-19 outbreak were also hurting inflation, according to Destatis.

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