Germany's Inflation Hits Highest in 10 Years Last Month

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Germany's consumer prices surged last month at the largest rate in 10 years.

According to the German Federal Statistical Office on the 1st, Germany's consumer prices in May rose 2.5% compared to a year earlier, marking the highest increase in 10 years since 2011.

Energy prices led the inflation trend. Prices of fuel oil, heating oil, and gasoline, which had sharply dropped due to COVID-19 lockdown measures a year ago, rose by 10% this time. Gasoline prices surged by more than 25% per liter, reaching 1.5 euros.

Food prices also increased by 1.5%. Prices of vegetables, butter, bread, and eggs generally rose. On the other hand, fruit prices fell by 0.7%.

The Deutsche Bundesbank forecasted that monthly consumer prices could reach the 4% range this year.

Joerg Kraemer, Chief Economist at Commerzbank Germany, predicted, "Monthly consumer price inflation could exceed 3.5% in the second half of the year."

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