BERLIN, Aug. 10 (Xinhua) -- Germany's Minister of Finance Christian Lindner on Wednesday presented plans for another tax relief package worth more than 10 billion euros (10.3 billion U.S. dollars) to deal with high inflation.

"People are concerned about inflation," said Lindner. With consumer prices for food and gas rising, "action needs to be taken," he stressed.

With a so-called inflation compensation law, the basic tax-free allowance is to be raised. On average, German employees will have an additional 190 euros of income next year.

In July, Germany's inflation rate remained high, at 7.5 percent. In May, inflation in Europe's biggest economy peaked at 7.9 percent, the highest level since the first oil crisis hit the country in the winter of 1973/1974.

Despite a "slight downward effect" from government measures such as the nine-euro ticket for public transport and a fuel discount, "the main reason for high inflation is still price rises for energy products," said Georg Thiel, president of the Federal Statistical Office (Destatis).

Destatis said that prices for energy products in July kept soaring, and were up 35.5 percent year-on-year, with heating oil prices more than doubling. Meanwhile, food prices rose for the fifth month in a row, and were up 14.8 percent.

Inflation is the "biggest worry among Germans, replacing the COVID-19 pandemic," market research institute GfK recently reported. As a result, consumers are looking to reduce spending on food and larger purchases.

Lindner said it is a "constitutional duty" to provide further tax relief in this situation. (1 euro = 1.03 U.S. dollars) Enditem

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