Berlin  - German wholesale prices surged to their highest point in 26 years in May, the nation's statistics office said Tuesday, as fears rise of growing inflationary pressures.

Wholesale prices in Europe's biggest economy soared by 8.1 per cent in May compared to the same month last year. Month-on-month prices rose by 1.4 per cent in May.

The release of the data came in the wake of European Central Bank chief Jean-Claude Trichet placing investors on notice last week that a rate hike could be in the pipeline with the ECB considering raising borrowing costs at its meeting next month. Oil prices also hit an all-time high just short 140 dollars a barrel.

The jump in whole prices in May was the highest year-on-year rate increase since February 1982, when whole prices leapt by 8.5 per cent.

In April 2008 and in March 2008, the annual rates of change were 6.9 per cent and 7.1 per cent, respectively, the statistics office said. (dpa)