Germany's annual inflation rises 7.9% in May

By Ovunc Kutlu

ANKARA (AA) - Annual inflation in Germany rose 7.9% in May, from the same month of last year, the Federal Statistical Office (Destatis) announced on Tuesday.

While the figure came in line with the market estimate, consumer prices annually rose 7.4% in April. On a monthly basis, consumer prices increased 0.9% in May, from the previous month.

This latest inflation figure marked the highest annual rise in consumer prices since 1974.

"The inflation rate thus reached an all-time high for the third month in a row since German reunification," Destatis President Georg Thiel said in a statement. "The main reason for the high inflation still is price rises for energy products. But we also see price increases for many other goods, especially food."

"A similarly high inflation rate was last recorded in the former territory of the Federal Republic in winter 1973/1974 when mineral oil prices had sharply increased as a consequence of the first oil crisis," he added.

In May, energy product prices were 38.3% higher than the same month of last year, after showing an annual increase of 35.3% in April, according to Destatis.

While the price of heating oil soared 94.8% annually in May, natural gas prices jumped 55.2% and motor fuel prices increased 41%, it added.