German pensions to rise again, but slower than inflation

BERLIN (AP) — The German government says retirees’ pensions will rise significantly this summer for the second consecutive year. However, the increase will still fall short of the current inflation rate. The Labor Ministry said Monday that pensions will increase by 4.39% in the former West Germany on July 1 and by 5.86% in the formerly communist east. That will follow increases last year of 5.35% in the west and 6.12% in the east. Rises in German pensions are linked largely to wage developments. Inflation has added to upward pressure on wages. Germany’s annual inflation rate stood at 8.7% in February, unchanged from January.