Berlin, Mar 20 (AP) German retirees' pensions will rise significantly this summer for the second consecutive year, the government said on Monday, though the increase will still fall short of the current inflation rate.

The Labor Ministry said pensions will increase by 4.39 per cent in the former West Germany on July 1 and by 5.86 per cent in the formerly communist east.

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That will follow increases last year of 5.35 per cent in the west and 6.12 per cent in the east.

Rises in German pensions are linked largely to wage developments. Inflation has added to upward pressure on wages; salary negotiations in various sectors lately have seen high demands and in some cases hefty increases.

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Germany's annual inflation rate stood at 8.7 per cent in February, unchanged from January.

The latest pension increase falls short of that. But it will finally bring pensions in the less prosperous east up to the level of those in the west, which is home to most of Germany's population, after years of efforts to narrow the gap.(AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)