Germany’s preliminary CPI rose 2.6% year-over-year, missing expectations and signaling easing price pressures in the eurozone’s largest economy.
Germany’s preliminary May consumer price index rose 2.6% year-over-year, below the 2.9% forecast and down from April’s 2.9% print. The harmonized index (HICP) climbed 2.7%, also softer than the 2.8% estimate, while core CPI increased 2.5% from 2.3% prior.
Earlier state-level data had pointed to a sharper slowdown, setting expectations for a national miss. Analysts had anticipated a modest decline after April’s steady 2.9% reading, reflecting broader disinflation trends across the eurozone.
The data may reinforce expectations for European Central Bank rate cuts, with markets pricing in easing as early as June.