FX.co ★ German Inflation Rate Confirmed at 2.1%

Germany's consumer price inflation rate was recorded at 2.1% in May 2025, aligning with preliminary estimates and remaining consistent with the previous month's figures. This rate represents the lowest level since October 2024. Inflation in goods saw an increase, moving to 0.9% from April's 0.5%, primarily due to persistently high food prices, which grew by 2.8%. Significant price hikes were observed in fruits (7.4%), sugar and confectionery (6.6%), edible fats and oils (4.7%), and dairy products and eggs (4.6%). Conversely, energy prices continued to decline, albeit at a reduced rate of -4.6% versus -5.4% previously, driven by reductions in fuel (-6.8%), electricity (-2.4%), and heating oil (-9.5%). Service sector inflation eased to 3.4% from 3.9%, influenced by decreased costs for international flights (-8.7%) and telecommunications (-1.3%). Excluding food and energy, core inflation slightly decreased to 2.8% from April's 2.9%. On a monthly basis, consumer prices increased by 0.1%, a notable decrease from April's 0.4%. Additionally, the EU-harmonised inflation rate reduced to 2.1% year-on-year from 2.2% and to 0.1% month-on-month from 0.5%.