Germany’s annual inflation rate eased in June, confirming the first estimate, as there was a respite from temporary government interventions.
Final data released by Germany’s Destatis statistics agency on Wednesday showed consumer prices rose 7.6 percent year-on-year, according to economists polled by the Wall Street Journal. In May, consumer prices rose 7.9%, the highest level since December 1973.
Prices rose by 8.2% year-on-year based on European Union harmonized standards.
On a monthly basis, consumer prices rose 0.1% and fell 0.1% by EU harmonized standards, both in line with forecasts of economists polled by the Wall Street Journal.
After the Russian invasion of Ukraine, energy prices rose significantly and had a significant impact on the high level of inflation, Destatis reported. Energy prices rose 38% in June on a year-on-year basis, following a 38.3% increase in May. Food prices also rose above average, rising 12.7% year-on-year, Destatis said.
Excluding energy prices, inflation in June would have been 4.2%. Excluding energy and food, the annual inflation rate stood at 3.2% in June.
Other factors pushing inflation higher are supply chain problems due to the coronavirus pandemic and significant price increases as the economic recovery gets underway, Destatis said.
Goods prices rose 14% in June year-on-year. Prices of non-durable consumer goods rose by 18.6% and prices of consumer durables rose by 5.5%.
Services prices rose 2.1 percent from a year earlier, up from 2.9 percent in May, Destatis said.
Source: Capital
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