Germany's inflation holds at 2.1% in May, energy prices fall

It was 2.2 per cent in March and 2.3 per cent in both January and February this year.

"The inflation rate has stabilised, mainly due to the continued decrease in energy prices", said Destatis president Ruth Brand in a release from the office.

“On the other hand, the rise in food and service prices drove inflation up in May also,” he noted.

Consumer prices rose by 0.1 per cent month on month (MoM) in May this year.

The prices of energy products were 4.6 per cent lower YoY in May. The price drop was less marked than in the preceding year.

Excluding energy prices, the German inflation rate stood at 2.7 per cent in May. The inflation rate excluding food and energy, often referred to as core inflation, was 2.8 per cent in May.

Both these rates have exceeded overall inflation for over a year, thereby demonstrating that inflation was above average in other important product groups.

The total prices of goods rose by 0.9 per cent from May 2024 to May 2025. In April 2025, the rate of price increase was 0.5 per cent.

The prices of non-durable consumer goods were up 1 per cent and durable consumer goods cost 0.7 per cent more in May 2025.

Price decreases were recorded not only for energy (minus 4.6 per cent) during the month.

ALCHEMPro News Desk (DS)