German inflation edged up unexpectedly in July after a further reduction in gas flows from Russia prompted concerns of even higher energy bills, data showed on Thursday, according to Reuters.
Consumer prices, harmonized 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.
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% from 7.6% the previous month, the data showed.
Earlier Thursday, 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.