The Strategist

Inflation in Germany hits record high in almost 50 years

05/31/2022 - 10:33

In May, Germany's inflation rate was 7.9%, a high not seen since the 1970s, when prices soared in the aftermath of the oil crisis.

According to early estimates by the country's Federal Statistical Office (Destatis), inflation in Germany surged in May to an all-time high of 7.9% on an annualized basis. This is the highest rate in 50 years. Consumer prices in the country increased 7.4% in April.

At the same time, consumer prices in Germany grew by 8.7% year on year in May, according to European Union norms (harmonized index of consumer prices, HICP). The HICP was expected to climb by 8.1 percent, say analysts polled by Bloomberg.

"Germany last saw inflation levels similar to those of May 2022 in the winter of 1973/1974, when oil prices also climbed sharply in the aftermath of the first oil crisis," Destatis said in a press release.