Germany – Underlying inflation remains stubborn
The German inflation rate remained at 2.1% in May, as in the previous month, and thus only slightly above the ECB's target.
Dr Ralph Solveen
Commerzbank Economic Research
05/30/2025
However, the core inflation rate, which excludes the often highly volatile energy and food prices, remains significantly higher at 2.8%, and there has been little progress in this area over the past twelve months. Nevertheless, the ECB is likely to cut interest rates further on Thursday.
According to initial estimates by the Federal Statistical Office, the inflation rate in Germany stood at 2.1% in May, the same as in the previous month. This is largely in line with the ECB's inflation target. However, excluding energy and food prices, which often fluctuate sharply, inflation is significantly higher, with prices rising by 2.8% year-on-year (April: 2.9%).
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