According to the final report from the Federal Statistical Office (Destatis), in May, consumer prices rose by 2.4% per annum, as expected, after an increase of 2.2% per annum in April. Inflation increased for the first time in five months and reached its highest level since February. On a monthly basis, consumer prices rose by 0.1%, slowing compared to April (+0.5%). Economists also expected an increase of 0.1%.
"The inflation rate is slightly up again, mainly due to the continued increase in service prices. By contrast, energy and food prices have had a dampening effect on overall inflation since the beginning of the year”, says Ruth Brand, President of the Federal Statistical Office.
The data also showed that in May, energy prices fell by 1.1% per year after declining by 1.2% per annum in April. Prices of household energy fell by 3.3% per annum. Price reductions were recorded for firewood, wood pellets and other solid fuels (-9.5%), electricity (-7.4%), and natural gas (-5.2%). By contrast, the prices of some energy products were higher than a year earlier, in particular district heating (+27.9%). Price increases were also observed for mineral oil products (+2.8%, of which heating oil: +9.7%, motor fuels: +2.2%). Food prices rose by 0.6% per year after an increase of 0.5% in April. Meanwhile, the CPI excluding energy and food rose by 3.0% per year after a similar increase in April.
Destatis said that in May, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Germany with inflation in European countries - rose by 0.2% on a monthly basis and by 2.8% per annum. In April, HICP increased by 0.6% m/m and by 2.4% per annum.