Overview
- Annual consumer prices in Germany eased to 2.1% in May from 2.2% in April, slightly above the 2.0% forecast
- Energy prices tumbled for a second month, dropping 4.6% and weighing on overall inflation
- Services inflation cooled to 3.4% even as core inflation excluding food and energy ticked up to 2.9%
- Market data show traders see over a 96% chance of a 25-basis-point rate reduction by the ECB on June 5
- Germany’s new government has made economic stability a priority amid trade-policy risks from U.S. tariffs