Overview

• Germany’s consumer price index remained unchanged at 2.1 percent year-on-year in May, according to preliminary data from the Federal Statistical Office.
• Energy costs fell by 4.6 percent compared to May 2024, following a larger 5.4 percent drop in April and easing some price pressures.
• Food prices rose by 2.8 percent year-on-year, driven by steep increases in coffee (up 43.3 percent), beef (up 30.4 percent) and butter (up 24.6 percent).
• Core inflation, which excludes volatile energy and food items, eased to 2.8 percent in May, reflecting moderated price growth in services and non-energy goods.
• Persistent inflation above the ECB’s two percent goal prompts economists to expect a deposit rate cut to two percent at the ECB’s June 5 meeting.