German inflation jumps to 40-year high

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German’s inflation rate rose to 7.3 per cent in March on an annual basis, hitting a fresh 40-year high, according to official figures issued on Wednesday.

The national consumer price index (CPI) in Germany climbed up from 5.1 per cent in February, Xinhua news agency reported, citing the preliminary figures published by the Federal Statistical Office (Destatis).

“The last time the inflation rate in Germany was at a similar level was in the autumn of 1981, when mineral oil prices also rose sharply as a result of the effects of the first Gulf War,” Destatis said.

In addition to the Covid-19 pandemic-related supply bottlenecks, rising energy prices also had a “considerable impact on the high rate of inflation.”

According to Destatis, consumer prices for household energy and motor fuels were up 39.5 per cent year-on-year.

The German Council of Economic Experts (GCEE) on Wednesday raised its forecast for the 2022 inflation rate from 2.4 per cent to 6.1 per cent.

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