German May import prices rose 2.4 percent from April and were up 7.9 percent compared with May last year, driven by higher fuel costs, according to the Federal Statistics Office. Economists polled forecast a 1.3 percent rise in May from April and a 6.8 percent year-on-year increase.In April, import prices rose 0.9 percent from March, while the year-on-year rate was 5.7 percent. German Import Prices rose the most in 18 years in May, gaining 2.4% from April, when they climbed 0.9%, the biggest gain since September 1990. Economists had expected a gain of 1.5%. The result adds confirmation of increasing inflation pressures in Germany which is Europe’s biggest economy. As has been talked about for a while now, surging oil prices has pushed up inflation and is putting additional pressure on companies to pass along those costs to consumers. The report adds to speculation that the ECB will indeed raise borrowing costs next week.
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