The German Federal Statistical Office (Destatis) has confirmed the inflation rate for May 2025, at 2.1 percent. This is in line with the preliminary estimate published at the end of May. In April, the inflation rate was also 2.1 percent, following a slight increase in March (2.2 percent) and a higher rate in January and February (2.3 percent).
“The inflation rate has stabilized, mainly due to the continued decline in energy prices” said Ruth Brand, President of the German Federal Statistical Office, on Friday. “On the other hand, the price increase for food and services also had an impact in May.”
Compared to April, consumer prices in May rose by 0.1 percent. Energy prices, in particular, were 4.6 percent lower than in the same period last year, with a smaller decline than in April (5.4 percent). Within the year, the prices of fuels, such as gasoline (-6.8 percent) and household energy (-3 percent), including electricity (-2.4 percent), wood and pellets (-5.4 percent) and heating oil (-9.5 percent), fell significantly.
Food prices, on the other hand, rose by 2.8 percent, with a higher rate of increase than the overall inflation rate. This was mainly driven by the price increase for fruits (7.4 percent), sugar, jam, honey and other sweeteners (6.6 percent), as well as for fats and oils (4.7 percent) and dairy products and eggs (4.6 percent). Some notable price increases were seen for chocolate (20.2 percent) and butter (17.6 percent), while others, such as sugar (-27.5 percent) and olive oil (-17.2 percent), saw significant price drops. Some food items, like bread and grains (0.7 percent) and fish and seafood (0.2 percent), saw relatively low price increases.
The core inflation rate, excluding energy and food, was 2.8 percent in May, indicating that the price increase in other important goods and services was above the overall inflation rate. The service sector, in particular, saw a price increase of 3.4 percent over the same period last year, with a slightly lower rate of increase than in April (3.9 percent).
Some notable price increases in the service sector were seen for combined passenger transportation (11.4 percent), insurance (9.4 percent) and healthcare services (6.5 percent), as well as for maintenance and repair of vehicles (5.5 percent), accommodations (5.1 percent) and catering services (4.2 percent). Net rent, in particular, increased by 2.1 percent. On the other hand, a few services, such as international flights (-8.7 percent) and telecommunications services (-1.3 percent), became cheaper.
Overall, the consumer price index rose by 0.9 percent over the past year, with a higher rate of increase in April (0.5 percent). In May, prices for consumer goods increased by 1 percent and for durable goods, by 0.7 percent. Some notable price increases were seen for non-alcoholic beverages (7.5 percent), tobacco products (5.9 percent) and cars (3.9 percent), while others, such as mobile phones (-7.6 percent), computers (-5.1 percent) and furniture and lighting (-0.5 percent), saw significant price drops.