Inflation was nearly 8 percent in May

Strong price increases for energy and food have pushed the inflation rate in Germany to its highest level for almost 50 years. In May, consumer prices were 7.9 percent higher than in the same month last year, as calculated by the Federal Statistical Office. The inflation rate in Europe’s largest economy thus remained above the seven percent mark for the third month in a row. From April to May 2022, prices rose by 0.9 percent. The Wiesbaden statisticians confirmed their provisional information from the end of May on Tuesday.

Inflation rates at the current level have never existed in reunified Germany. In the old federal states, you have to go back in the time series to the winter of 1973/1974 to find similarly high values. At that time, mineral oil prices had risen sharply as a result of the first oil crisis. Higher inflation rates reduce the purchasing power of consumers because they can then afford less for one euro.

Energy and food more expensive

The exploding energy prices are primarily responsible for the current record inflation rates. In May, energy products were 38.3 percent more expensive than a year ago. Heating oil has become around 95 percent more expensive and natural gas 55 percent more expensive.

But private households also have to pay significantly more for groceries: the prices for groceries rose by 11.1 percent in May compared to the same month last year, in April the plus for groceries was 8.6 percent. Edible fats and oils in particular have become significantly more expensive, but meat, dairy products and eggs as well as bread and cereal products have also risen in price. Without energy and food, the inflation rate would only be 3.8 percent.