The upward trend in prices in Germany is slowing down as inflation declined to 7.6 percent in June, according to preliminary figures published by the Federal Statistical Office (Destatis) on Wednesday.

Axar.az reports that back in May, inflation in Europe's largest economy had peaked at 7.9 percent, the highest level since the first oil crisis in the winter of 1973/1974.

As in previous months, energy prices had a "considerable impact on the high inflation rate," Destatis noted. Overall energy prices, including household energy and motor fuels, were up 38 percent year-on-year.

Amid wheat shortages and fears of a global food crisis, food prices also increased above average by 12.7 percent year-on-year, according to Destatis. Interruptions in supply chains caused by the COVID-19 pandemic were also driving up prices.

"Consumers continue to see a significant risk of the German economy slipping into recession," market research institute GfK said on Tuesday. In addition, private consumption was "threatening to slump due to the high level of inflation."

Annual inflation in Germany in 2022 is expected to reach 7.4 percent, significantly higher than during the 1970s oil crisis, according to the Kiel Institute for the World Economy (IfW Kiel).

Should supply bottlenecks ease and crude oil prices cease to have any further impact on the overall price development, inflation in Germany would start normalizing next year and reach 4.2 percent in 2023, according to IfW Kiel.