German inflation edged up unexpectedly in July after a further reduction in gas flows from Russia prompted concerns of even higher energy bills.
Consumer prices, harmonised to make them comparable with inflation data from other European Union countries (HICP); increased by 8.5% on the year, following an 8.2% rise in June, the federal statistics office said, citing preliminary data.
A Reuters poll of analysts had pointed to an overall annual HICP reading of 8.1% in July. Energy prices were 35.7% higher in July on the same month last year, the office said. Both this and increased food prices – up 14.8% – were driving up inflation considerably, it added.
In non-harmonised terms, Germany’s year-on-year consumer price index fell slightly in July to 7.5%. This was from 7.6% the previous month, the data showed.
The Ifo institute said inflation in Europe’s largest economy may have reached its peak, citing a survey that showed the number of German companies planning to increase prices had fallen for the third consecutive month in July.