German inflation rate hits yearly high

Experts attributed the inflation hike to higher food costs brought on by a cold winter.

Official figures have revealed that Germanyâ„¢s inflation rate, which increased more than expected in July, has reached its highest figure this year.

Germanâ„¢s federal statistics office, Destatis, said in a statement on Tuesday that the annual cost of living rose 1.9 percent this month after a 1.8 percent increase in June.

The final data also showed that inflation has increased more than expected on a monthly basis, as consumer prices rose by 0.5 percent.

Experts attributed the inflation hike to higher food costs brought on by a cold winter, floods which swept through eastern and southern Germany in June and a heat wave.

This is while newly-released figures from Germanyâ„¢s National Employment Agency have shown that a record number of Germans are working two jobs.

However, the labor ministry did not provide any direct evidence of the reason for the growing trend, though it admitted that some of those holding two jobs are forced to work in order to ease their financial hardships.

Germanyâ„¢s investor confidence index dropped more than two points to 36.3 points in July, following reports of poor industrial production and low export data in the debt-stricken eurozone.

On June 3, the International Monetary Fund halved its 2013 economic growth forecast for Germany to 0.3 percent as recession in the eurozone continues to hold back Europeâ„¢s largest economy.

Europe plunged into financial crisis in early 2008. The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.


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Republished from: Press TV