Berlin  - The prospects grew Friday of the European Central Bank delivering a rate hike next month after new German figures showed soaring energy costs leading to renewed price pressures in Europe's biggest economy.

German factory gate prices surged by annual six per cent in May to record their biggest jump in almost two years, the nation's statistics office said. On a monthly basis, producer prices edged up by 1 per cent.

Helping to drive the increase was a strong increase in the energy and food sectors with the cost of energy racing ahead by 15 per cent over the year. Annual oil product prices soared by 25.9 per cent.

ECB chief Jean-Claude Trichet placed investors on notice earlier this month that renewed inflationary pressures meant a 25-basis points could in the pipeline.

Annual inflation in the 15-member eurozone hit a record 3.7 per cent last month pushing consumer prices well above the ECB's target of keeping inflation close to but just below 2 per cent. (dpa)