German inflation hits highest level since 2018

Empty seats and tables in front of a restauarant are pictured amid the coronavirus disease pandemic, in Berlin, Germany May 30 2021. Picture: REUTERS/ANNEGRET HILSE

Consumer prices, harmonised to make them comparable with inflation data from other EU countries, rose by 2.4% in May, up from 2.1% in April. A Reuters forecast had pointed to a May reading of 2.5%. Eurozone inflation is approaching 2%, its fastest rate in years, on the back of fiscal support and the unwinding of 2020’s oil price crash, prompting some commentators to predict a new era of inflation.

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