German inflation rises to 2.8% in May
2024.05.29 08:26
By Rachel More
BERLIN (Reuters) – German inflation rose slightly more than expected to 2.8% in May, preliminary data from the federal statistics office showed on Wednesday.
Analysts polled by Reuters had forecast a reading of 2.7%, after a year-on-year increase in consumer prices of 2.4% in April, based on data harmonised to compare with other European Union countries.
Economists will pay close attention to the data from Europe’s largest economy ahead of the euro zone’s inflation data release expected on Friday.
The European Central Bank looks set to lower interest rates next week after its biggest ever streak of hikes brought down inflation to just above its 2% target but also choked off credit.
In Germany, cooling energy and food prices have had an easing effect on inflation this year – but core inflation, which excludes those more volatile elements, has remained high.
In May, core inflation was 3.0%, the statistics office said, unchanged on the previous month.
