(CercleFinance.com) – The rise in energy and food prices led German inflation to once again accelerate its trend in May, with an initial estimate of 7.9% on Monday .
According to preliminary figures published by the Federal Statistical Office, consumer prices increased by 0.9% over one month, which brings their increase to 7.9% over one year, against +7.4% in April.
The consensus was for an increase of 7.6%.
Although the rise in energy costs accelerated again last month, to +38.3% on an annual basis, their increase was accompanied by a double-digit increase in food products, the prices of which jumped 11.1% last month.
According to the harmonized HICP inflation standard, inflation was +1.1% over one month and +8.7% over one year.
“Given the war in Ukraine and ongoing supply chain issues, underlying inflationary pressures are likely to remain elevated for some time,” Commerzbank economists warn.
These figures seem to increase the likelihood that the European Central Bank (ECB) – whose mandate is to control inflation – will raise its key rates, probably sometime this fall.
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