German inflation accelerated to the fastest pace in 12 years in June, led by surging energy costs, final figures show.
Europe's largest economy saw consumer prices rise 3.4 per cent from a year ago after gaining 3.1 per cent in May, the Federal Statistics Office in Wiesbaden said today.
This is the fastest pace since Germany started calculating inflation using a harmonized European Union method in 1996 and matches an initial report from June 27th.
A 50 per cent surge in crude oil prices this year has driven inflation and drained companies' and consumers' spending power just as economic growth weakens. German investor confidence fell to a record low in July.
Still, the European Central Bank this month raised its key rate to a seven-year high to keep companies from passing on higher costs to customers and consumers.
In the month, harmonized consumer prices rose 0.4 per cent, today's report showed.
Under a national measure, prices rose 3.3 per cent in the year, the fastest pace
since December 1993.
In the month, prices increased 0.3 per cent, the statistics office said. Consumer prices for heating oil increased 62 per cent from a year earlier and fuel was 15 per cent more expensive.
Bloomberg