Inflation in Germany in May slowed to the lowest since February 2022

According to preliminary data from the German Federal Statistical Office, consumer prices harmonized with the standards of the European Union in May increased by 6.3% year-on-year.

Thus, inflation slowed significantly compared to 7.6% in April. Experts on average predicted an increase of 6.7%. 

On a monthly basis, consumer prices fell by 0.2% in May, which is the first decline in five months. In April, this indicator increased by 0.6%.

Prices calculated according to German standards increased by 6.1% year-on-year in May, the lowest pace since March 2022, due to a slowdown in price growth in all categories.

In particular, food prices rose by 14.9% (in April – by 17.2%), energy – by 2.6% (6.8%), services increased in price by 4.5% (4.7% in April). The final data on the dynamics of inflation for May will be released on June 13.

The EUR/USD pair reacted to the report with moderate growth: from the level of 1.0659 to 1.0738.