In June, the Eurozone’s biggest economy, Germany, saw inflation hit 6.4% in yearly terms, marking the measure’s first increase since January, according the the Federal Statistical Office (Destatis) on Thursday.
Preliminary data showed that the figure was higher than the 6.1% which had registered the previous month.
Year over year, the figure came in at 6.8% when it was harmonized to compare with other EU countries.
Destatis noted that food prices have continued to grow at an above-average rate in June compared to the same period last year, with the rate registering at 13.7%, increasing the pressures on consumers already struggling with a massive cost of living crisis.
Energy prices jumped 3% in June on an annual basis. The report noted that the third relief package delivered by the federal government was partially responsible for the slowing of the increases in energy prices.
Earlier this year, the German Council of Economic Experts (GCEE) warned that if monetary policy measures are offset by risks in the financial markets, inflation may remain higher for longer than expected, or even accelerate. The GCEE said it expects the inflation rate to average at 6.6% in 2023.
At the same time, interest rates in the Eurozone were hiked to an unprecedented 4% by the European Central Bank (ECB), as it is attempting to rein in the persistent inflation. In addition, a further rate increase is “very likely,” according the ECB President Christine Lagarde.