Germany's
Federal Statistical Office (Destatis) announced on Wednesday the country’s
consumer price index (CPI) is estimated to edge up 0.1 per cent m-o-m in May after jumping 0.5 per cent m-o-m in April. That would be the weakest monthly advance in the index since December 2023 (+0.1 per cent m-o-m).
On a y-o-y
basis, Germany’s CPI is seen to soar 2.4 per cent in May, following a 2.2 per cent climb in the
previous month. That
would represent the first rebound in annual inflation in five months and mark the
strongest annual increase since February (+2.5 per cent).
Economists had forecast
CPI would increase by 0.2 per cent m-o-m and by 2.4 per cent y-o-y in May.
According to
the report, energy prices decreased by 1.1 per cent y-o-y this month, following
a fall of 1.2 per cent y-o-y in April.
Meanwhile, the food prices went up 0.6 per cent y-o-y after a rise of 0.5 per cent y-o-y in the previous month. The
services costs surged by 3.9 per cent y-o-y, hastening from 3.4 per cent
y-o-y in the previous month.
The harmonized
index of consumer prices for Germany (HICP), which is calculated for European
purposes, is estimated to increase by 0.2 per cent m-o-m and by 2.8 per cent
y-o-y (the most since January (+3.1 per cent y-o-y)). Economists had forecast gains
of 0.2 per cent m-o-m and 2.7 per cent y-o-y for May. In April, the German HICP climbed by 0.6 per cent m-o-m and 2.4 per cent y-o-y.