Germany has reached the highest inflation rate in nearly 50 years. Consumer Price Index (CPI) increased by 7.9 percent in May compared to the same period of the previous year.
Annual inflation in Germany was last measured this high in the winter of 1973/1974, when the first oil crisis was experienced. It is stated that the increase in fuel and food prices plays a role in inflation. Annual inflation in Germany was recorded as 7.4 percent in April.
“The most important reason for high inflation, as always, is price increases in power products. But we also observe price increases in many other works, especially in food products,” said Georg Thiel, Head of the Federal Statistical Office.
In May, while the price of power increased by 38.3 percent annually, fuel oil gained value by 41 percent and diesel oil by 95 percent. The price increase in food was also determined as 11.1 percent. The price of cooking oil increased by 38.7 percent, the price of meat and meat works increased by 16.5 percent, the price of dairy products and eggs increased by 13.1 percent, and the price of bread and wheat products increased by 10.8 percent.
Due to high inflation in Europe, the European Central Bank, headed by Christine Lagarde, decided to raise interest rates for the first time in 11 years.