Germany’s consumer price inflation eased to 2.6% year-on-year in May 2026, down from 2.9% in April—an over two-year high—and slightly below market expectations, according to preliminary estimates. Despite the moderation, inflation remains above the ECB’s 2% target.
Goods inflation slowed to 2.2% from 2.9%, largely reflecting weaker price pressures in energy (6.6% vs. 10.1%) and food (0.4% vs. 1.2%). In contrast, services inflation accelerated to 3.1%, rebounding from a three-and-a-half-year low of 2.8% in April. Core inflation, which excludes food and energy, picked up to 2.5%, rising from its lowest level in five years. Meanwhile, the EU-harmonized inflation rate also edged down, to 2.7% from 2.9%.
