German consumer prices hit 3 per cent fuelling inflation fears

German consumer prices hit 3 per cent fuelling inflation fearsBerlin  - German inflation hit three per cent in May, the nation's statistics office confirmed Friday, amid growing concerns about the threat posed to the world economy by surging consumer prices.

The release of the latest inflation data for Europe's biggest economy came as part of the buildup to next month's Group of Eight (G8) leaders meeting in Japan where resurgent inflationary pressures are likely to be a key item on the agenda.

Surging oil and food prices are also the key theme at a G8 finance ministers' meeting in Japan Friday.

In addition, European Central Bank chief Jean-Claude Trichet has raised the prospects of the ECB delivering at its meeting next month a 25-basis points rate hike to counter the pickup in inflation, which hit a 16-year high of 3.6 per cent in May in the 15-member eurozone.

This is well above the bank's annual inflation target of close to but under 2 per cent. Compared to April, German inflation rose 0.6 per cent, the statistics office said. (dpa)

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