Energy prices push German inflation to 40 years high

Berlin-Germany’s inflation rate reached its highest level in more than 40 years in April, boosted by natural gas and mineral oil products, whose prices have risen significantly since Russia’s attack on Ukraine.

Consumer prices have been adjusted to compare with inflation data from other European Union countries (HICPs), rising 7.8% annually, up from 7.6% in March, according to the Federal Bureau of Statistics.

Inflation from Germany, the largest eurozone economy, precedes Friday’s data for all 19 countries. Eurozone inflation hit a record high in March.

Opinion polls by Reuters analysts pointed out that Germany’s annual HICP reading in April was 7.6% overall.

According to the Statistics Bureau, Germany’s last record of similarly high inflation was in the fall of 1981 as a result of the first Gulf War.

“Given the fall in gasoline prices, we expected a slight relief from inflationary pressures, but that didn’t happen again,” said Elmer Felker, a bank analyst at LBBW.

For the European Central Bank, “this is interpreted as another clear demand to finally give up on hesitation in terms of breaking away from ultra-loose monetary policy,” Voelker added.

ECB Deputy Governor Luis de Guindos said Thursday that the central bank needs to pay attention to the recent rise in inflation expectations above the target of 2%.

The key indicator of long-term inflation expectations in the euro area was 2.4%, centered on the highest levels in the last decade.

Energy prices are pushing costs up, with producer prices rising the most year-over-year since the record began in 1949, the first month reflecting the war in Ukraine, and consumer inflation. Is bringing bad news to.

According to the Ministry of Economy, the German government expects inflation to be 6.1% in 2022 and 2.8% next year because of the impact of energy prices on Europe’s largest economy.

Miranda Murray