2023.06.1308:02:00UTC+00German Inflation Eases To 14-Month Low As Estimated

Germany's consumer price inflation eased further in May to the lowest level in more than a year, as initially estimated, the latest figures from Destatis revealed on Tuesday.

The consumer price index climbed 6.1 percent annually in May, slower than the 7.2 percent rise in April. That was in line with the flash data published on May 31.

Further, this was the weakest inflation since March 2022, when prices had risen 5.9 percent.

Similarly, EU-harmonized inflation slowed to 6.3 percent from 7.6 percent in April, as estimated.?

"The year-on-year increase in energy prices was much smaller in May, and food prices continued to be the biggest driver of inflation,"?Ruth Brand, president of the Federal Statistical Office, said.

The annual price growth in energy eased notably to 2.6 percent in May from 6.8 percent a month ago due to the high base effect.

Food prices continued to increase at an above-average rate of 14.9 percent annually in May, despite easing from April's 17.2 percent growth.

Inflation excluding energy and food prices was 5.4 percent, demonstrating the enormous influence of food prices on overall inflation.

The cost of services grew at a slower pace of 4.5 percent after climbing 4.7 percent in April. The net rents, exclusive of heating costs, continued to play a significant role in dampening prices.

On a monthly basis, consumer prices dropped 0.1 percent in May, reversing a 0.4 percent increase in the prior month. Similarly, the harmonized index of consumer prices posted a 0.2 percent fall versus a 0.6 percent gain a month earlier. There was no change in the figures compared to the initial estimate.