Germany’s annual CPI inflation fell to 2.6% in May, undershooting expectations of 2.8% and marking a slowdown from April’s 2.9%.
Germany’s annual inflation rate eased to 2.6% in May, down from 2.9% in April, according to flash estimates. The reading came in below the consensus forecast of 2.8%, signaling a sharper-than-expected slowdown in price pressures.
On a monthly basis, consumer prices declined 0.2% after rising 0.6% in April. The softer inflation print aligns with broader expectations of cooling price growth across the eurozone, though energy and food costs remain key drivers.
Markets are likely to view the data as supportive of potential European Central Bank rate cuts later this year, though policymakers will await further evidence of sustained disinflation.