BERLIN (Reuters). German inflation hit its highest point in almost 50 years in May. This is due to rising energy prices and increased food prices since the outbreak of war in Ukraine.

According to the Federal Statistics Office, consumer prices rose by 8.7% in an average year, harmonised so they are comparable with inflation data for other European Union members (HICP).

Inflation in Germany has never been as high since 1973/1974. This was when the oil crisis triggered a spike in mineral oil prices.

This figure beats the 8.0% prediction by analysts in a Reuters survey. It marks the second consecutive month of record highs after April’s 7.8% increase, which was the largest in 40 years. [L5N2WQ6JB]

The office reported that energy prices increased by 38.3% in May, compared with the same month last years, and food prices rose at an average rate of 11.1%.

Chief economist of Berenberg Bank Holger Schmieding stated that there are still inflationary pressures in place for products affected by supply shortages, and food, before things improve from fall.