HOMEABOUTWEALTH MANAGEMENTINSIGHTMOTORSPORTCONTACT

German inflation rate vaults to near 50-year high

May 30, 2022

In our Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.

Inflation in Germany has risen to 7.9% in May - the highest level seen in the country since reunification and similar to rates not seen since 1973.

Surpassing the already record-breaking levels seen in April of this year, statistics agency Destatis highlights Russia’s invasion of Ukraine and the alarming rise in energy prices as drivers for the increase.

The country is planning a package of policies to try and ease the burden on consumers, including cheap monthly tickets for regional public transport between June and August and a discount for drivers at petrol stations.

In the UK, the price of budget pasta, bread and beef mince has soared according to the Office for National Statistics. ONS figures showed prices rose at rates far higher than the standard level of inflation - with pasta rising by 50%, more than five times higher.

In the United States, manufacturing output and new orders were strong but the S&P Global Flash PMI receded to 57.5 in May, down from 59.2 in April. The survey indicated that input costs and output charges also increased meaningfully. 

Finally, in Japan, a further surge in coronavirus cases in Beijing ignited fears of an economic slowdown amid supply chain concerns. Worries about tightening global financial conditions and the potential impact on economic growth similarly weighed on Japanese sentiment. Further losses in the U.S. tech space also hurt investor confidence.

All Insight Articles >Contact Us >

Latest Insight