The last time consumer prices rose by that much in a year was in 1994, the Destatis statistics office said.
Energy prices gained 9.6 percent on the year, while food cost 6.4 percent more, Destatis said.
An additional factor was the increase in 2007 of Germany's value added tax, the effects of which took a few months to feed into the economy.
In December however, inflation was just 1.1 percent on a 12-month basis, the lowest level since October 2006, Destatis said, owing to a sharp drop in oil prices.
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