Rising fuel prices, more expensive food and rising energy costs: inflation in Germany is at its highest since the winter of 1973. Experts are concerned.
Expensive gas and food are driving German inflation higher than it has been for nearly 50 years. In May goods and services cost an average of 7.9 per cent more than the previous year, as announced on Tuesday by the Federal Statistical Office, thus confirming an estimate at the end of May.
The last time inflation was as high was in the winter of 1973/74, when fuel also increased significantly following the first oil crisis. In April, the value was still 7.4%. The European Central Bank (ECB) believes that a level of 2.0% is ideal for the euro area. Due to rising prices, the ECB, led by President Christine Lagarde, wants to raise interest rates in July for the first time in eleven years.
“Rising energy prices are still the main cause of high inflation,” said the president of the statistical office Georg Thiel. “But we are also seeing price increases for many other products, especially food.” Energy prices rose significantly by 38.3 percent in May. Fuel prices rose 41 percent, light heating oil cost almost 95 percent more than a year ago.
The biggest rise in food prices since reunification
Experts fear that prices are rising not just for energy, but across the board. Food prices have risen by 11.1%, more than ever since reunification.