Inflation in Germany jumped in May to a rate not seen in more than a year on the back of a sharp rise in energy prices.
Consumer prices climbed 2.2 per cent in May from the same month in 2017, according to the Federal Statistics Office (Destatis). The figure matched the 2.2 per cent recorded in February 2017. Economists had forecast an increase of 2 per cent, a poll by FactSet showed.
Preliminary figures from Spain, released earlier on Thursday, showed a similar increase in inflation.
Energy prices increased at an annual rate of 5.2 per cent, driven by a sharp rise in the price of crude oil. “A major reason for the increase in the inflation rate is the price development for liquid fuels (heating oil and motor fuels),” Destatis said.
Food prices were also up markedly, to a year on year pace of 3.5 per cent.
“German headline inflation won’t surge from here, but it could nudge a bit higher in coming months, before easing into year-end,” said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.