German inflation rate slips again in July from month before
BERLIN (AP) — Germany’s annual inflation rate has declined slightly for the second consecutive month, official data showed Thursday, but July’s pace of 7.5% was still within sight of the nearly half-century high it reached in May.
Inflation in Europe’s biggest economy rose 7.9% in May from a year earlier, the highest level since the early 1970s, before slipping to 7.6% last month. The preliminary monthly figure for July, reported Thursday by the Federal Statistical Office, is usually confirmed in a final report about two weeks later.
Energy prices spiked 35.7% this month from a year earlier and food prices rose 14.8%.
Germany temporarily lowered taxes on diesel fuel and gasoline at the start of June and introduced an ultra-cheap ticket that allows people to use all local and regional public transportation for 9 euros ($9.15) a month. The measures are due to last for three months. The statistics office said it wasn’t yet clear to what extent they dampened inflation.
Chancellor Olaf Scholz wants to work with unions and employers to find ways to address the impact of rising prices while preventing an inflationary spiral.
The July inflation rate for all 19 countries that use the euro will be released by the European Union’s statistics office Friday after consecutive months of record highs. It reached 8.6% in June.
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