Germany hit the highest level of inflation in 50 years due to a rise in the cost of living, energy, and foodstuff prices.
The data provided by the Federal Statistical Office of Germany indicate that levels of inflation reached 7.9 percent in May 2022.
The inflation rate is calculated by comparing the difference between the Consumer Price Index (CPI) of a given month, with the same month of last year.
This is the highest level of inflation Germany has recorded since its reunification around 40 years ago.
This record is similar to that of 1973 and 1974 during the 1973 World Oil Crisis.
The Federal Statistical Office of Germany blamed the war in Ukraine and the rise in oil prices for hitting this record high inflation.
Energy prices increased by 38.3 percent compared to the same period of the previous year, whereas foodstuff prices increased by 11 percent.
High inflation rates weakened German consumers’ ability to buy an array of products and services, thus weakening their purchase power.
Analysts estimate that Europe will witness an inflation rate of around 6 percent on average this year.
Furthermore, German authorities are planning a series of policies that aim to reduce the burden on consumers, especially in the domain of energy.
The government might issue monthly budget public transportation cards for the period between June and August.
They are also likely to offer motorists, discounts at gas stations.