German inflation May 2025

Initial data from the Destatis Statistics Office on Friday showed that the annual inflation of Germany amounted to 2.1 % in May, which is approaching the European Central Bank’s goal 2 %, but comes in the estimates of a slightly analyzer from analysts.

Print compares by 2.2 % Reading in April And with Reuters drop 2 %.

Printing is coordinated across the euro area for comparison.

The so -called basic inflation, which comes out of the most volatile food and energy prices, decreased, from 2.8 % to 2.9 % in May. Meanwhile, the services that have been closely monitored reduce sharply, reaching 3.4 % compared to 3.9 % in the previous month.

Power prices decreased significantly for the second month in a row, and decreased by 4.6 % in May.

The consumer price index in Germany has been closed to the goal of the European Central Bank of 2 % in recent months, in a positive indication amid the constant uncertainty about the economic view of the largest economy in Europe.

In the Friday memorandum, Carsten Barzky, Carsten Barzky, said in a memorandum on Friday, this goal should be achieved in the coming months.

“The German inflation is likely to continue at least in the short term, it is likely that it will continue in its landmark, and may have decreased to less than 2 % in the coming months,” he said.

The opposition developments are expected to constitute inflation expectations, and – associated with low energy prices – lead to the publication of the publication on the 2 % mark throughout the second half of the year, as Brzeski indicated.

“On the one hand, cooling the labor market must take off wage pressure and thus inflationary pressures; on the other hand, the government’s financial incentive is likely to pressure the inflationary pressure towards the end of the year and outside,” he explained.

Local and international issues have spent expectations for the future of Germany.

On the one hand, US President Donald Trump’s tariff may cause economic growth, given the situation of Germany as an export -based country, although the potential impact of these duties on inflation is still unclear. But repeated shifts in politics and developments were the disturbance of the image.

On the other hand, the newly blind German government began to work and made the economy a top priority. Questions still revolve around how long and to what extent can the new Berlin Administration Policy plans be achieved.

The European Central Bank is scheduled to take the following interest rate decision on June 5, with the last pricing of merchants by more than 96 % of the interest rate reduction at a quarter of a point, according to LSEG data. Once again in April, the central bank reduced the rate of deposit facilitation by 25 basis points to 2.25 %.

Ang Barzeeski said that the printing of German inflation on Friday should bring “relief” to the European Central Bank because it indicates that inflation is continuing, adding that despite the latest developments related to definitions, the central bank has a stronger issue to reduce additional prices than chance.

The returns of the German package were slightly higher after issuing the data. Bund’s return for two years has increased to more than one basis point to 1.719 %, while the return on the Bund was less than a lower basis point to 2.521 %.