German inflation jumped to 3.5 per cent in May from 2.9 per cent in April, hitting its highest rate since end-1993 as prices of food, household energy and fuel rose, preliminary figures released today show.
The inflation rate harmonised to compare with other European Union countries surged even higher to a 12-month rise of 3.6 per cent compared with 2.9 per cent in April reported both for the harmonised and national rate.
Economists said inflation both in Germany and in the euro zone was likely to have peaked in May as the food crises that boosted inflation were seen subsiding and energy prices had also come off recent high levels.
Slowing economic growth was also likely to take the edge off price pressures.