Inflation Stagnates: Germany’s Price Hike Mystery Unraveled?

Inflation Stagnates: Germany's Price Hike Mystery Unraveled?

Germany’s Consumer Price Index Remains Steady in May 2025

According to the Federal Statistical Office, the annual rate of consumer price growth in Germany has stabilized in May 2025, with a projected rate of 2.1 percent. This marks a slight decrease from the previous month, when the inflation rate stood at 2.1 percent, after a slight increase in the first four months of the year.

The core inflation rate, which excludes food and energy, has also shown a slight decline, from 2.9 percent in April to a projected 2.8 percent in May. This is still significantly higher than the overall inflation rate.

Energy prices, as expected, continued to decline, with a year-on-year drop of 4.6 percent in May. Food prices, on the other hand, rose by 2.8 percent, a consistent trend. Service prices, which account for a significant portion of the consumer basket, increased by 3.4 percent.