Inflation in Germany at its Highest Level in 3 Years

Consumer prices in Germany recorded an annual increase of 2.4 percent in May 2021. Thus, it reached the highest level seen since 2018.

Inflation in Germany was at its highest level in 3 years. Inflation climbed to its highest level since October 2018 with the gradual lifting of restrictions imposed in Germany as part of the fight against the coronavirus epidemic, and the reopening of restaurants and shops. In Europe's largest economy, consumer prices increased by 2.4 percent in May. The average of the estimates of economists surveyed by Bloomberg was an increase of 2.3 percent. The Bundesbank expects inflation to climb to 4% in 2021 for the first time in two decades. Inflation data to be announced tomorrow in the Eurozone is expected to increase by 1.9 percent. The lifting of quarantines on a global basis has led to an increase in demand for goods and services. Although the Eurozone economy is recovering, European Central Bank officials stated that it is necessary to be careful about the increase in prices and it is too early to withdraw monetary support.