WIESBADEN (dpa-AFX) – Rising energy prices have further fueled inflation in Germany. According to preliminary calculations by the Federal Statistical Office, the annual rate of inflation rose to 2.5 percent in May. In April it was 2.0 percent and in March 1.7 percent. Since the temporary VAT cut expired at the end of 2020, consumer prices have risen for the fifth month in a row.
Consumers had to dig deep into their pockets in May compared to the same month last year for energy, which was 10 percent more expensive. At the beginning of the pandemic in spring 2020, raw prices collapsed due to low demand on the world market. Fuel and heating oil became significantly cheaper. In the meantime, raw prices have recovered. The CO2 tax of 25 euros per tonne of carbon dioxide (CO2) emitted when diesel, gasoline, heating oil and natural gas was burned, which was introduced at the beginning of the year, is also causing the prices for heating and refueling to climb.
According to preliminary calculations, consumer prices rose by 0.5 percent from April to May 2021./mar/DP/bgf