Inflation in Germany accelerated to a record 8.7% in May

Consumer prices in Germany, equated to EU standards, jumped 8.7% in annual terms in May, according to preliminary data from the country’s Federal Statistical Office (Destatis).

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The indicator became a record since the beginning of its calculations.
Analysts polled by Trading Economics had expected a more moderate rise of 8%.

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In April, inflation in the country was 7.8%.
Consumer prices increased by 1.1% in May compared to the previous month after rising by 0.7% in April. Experts expected an increase of 0.5%.

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Consumer prices, calculated according to German standards, jumped in May by 7.9% y/y and by 0.9% m/m. Analysts had expected growth of 7.6% and 0.5%, respectively. Annual growth was the highest since the winter of 1973-74, Destatis said.

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Energy products jumped in price by 38.3% in annual terms after rising by 35.3% in April, food – by 11.1% (in April – by 8.6%). Growth in prices for services slowed down to 2.9% from 3.2%.