German inflation hits nearly 50-year high in August

GERMAN inflation rose to its highest level in almost 50 years in August, beating a previous high set only 3 months earlier, as energy prices drove up inflation, data showed on Tuesday (Aug 30).

Consumer prices, harmonised to make them comparable with inflation data from other European Union countries (HICP), increased by 8.8 per cent on the year, following an unexpected 8.5 per cent rise in July, the federal statistics office said.

German inflation rose by 8.7 per cent in May, which had been the first time since the winter of 1973/1974 that inflation had been so high, according to the statistics office.

The annual HICP reading for August was in line with a Reuters poll of analysts who predicted a rise of 8.8 per cent.

Energy prices in August were 35.6 per cent higher compared with the same month the previous year, while food prices had increased 16.6 per cent year on year, said the statistics office.

August’s rise includes measures meant to stifle inflation, including cheaper public transit tickets and a fuel tax cut. REUTERS