German inflation is the highest for more than 40 years

By Maria Martinez

 

Germany’s annual inflation rate rose in April at a faster pace than in March, against expectations of a deceleration and posting the highest figure since autumn 1981, according to preliminary data released Thursday by the German statistics office Destatis.

Consumer prices rose 7.4% year on year, measured by national standards, versus the 7.2% predicted by economists in a Wall Street Journal poll. They rose by 7.8% year on year according to harmonized European Union standards, above economists’ forecasts of 7.6%.

“Since Russia’s attack on Ukraine, the prices of natural gas and petroleum products have risen sharply again and have had a considerable impact on the high inflation rate,” Destatis said.

Such a high inflation rate in Germany was last recorded in 1981, when oil prices rose following the Iran-Iraq war, the statistics office said.

Other factors pushing inflation higher include delivery bottlenecks due to the pandemic and significant increases in energy prices as the economic recovery has begun, Destatis said.

Consumer prices rose 0.8% month-on-month according to national standards and 0.7% according to EU harmonized standards. Economists polled by the Journal expected prices to rise by 0.5% per month under national standards and 0.4% under harmonized EU standards.

The final results will be published on May 11.

 

Write to Maria Martinez at maria.martinez@wsj.com

 

(END) Dow Jones Newswire

April 28, 2022 08:32 ET (12:32 GMT)

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James R. Rhodes