High oil costs drive up German inflation

High oil prices boosted the annual rate of inflation in Germany in June to 1

High oil prices boosted the annual rate of inflation in Germany in June to 1.8 per cent, the Federal Statistics Office said today.

From May, the EU-harmonised index of consumer prices (HICP) rose 0.2 per cent, the office said, again confirming an initial estimate.

A national measure showed prices rose a tenth of point less than previously announced both on the year and the month.

In May, the HICP in Europe's largest economy rose by 1.6 per cent from the previous year and 0.4 per cent month-on-month.

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"The prices for mineral oil products boosted the (national) annual rate of inflation in June 2005 (as they have since April 2004)," the Office said in a statement.

"Without heating oil and fuels, annual inflation would have been 1.3 per cent." The revised national gauge showed an increase in prices of 1.8 per cent year-on-year in June and 0.1 per cent month-on-month.

Separate June data today showed EU-harmonised annual inflation accelerating by 0.2 points from May to 3.2 per cent in Spain and slowing by the same margin to 2.1 per cent in Italy.