The price level in Germany in May rose by 2.5 percent year on year. Compared with April, inflation accelerated by 0.4 percentage points. This follows from preliminary data from the Federal Statistical Office.
In May, annual inflation in Germany reached its highest level in five years. Price growth accelerated mainly due to energy, which rose by ten percent year on year. In April, it was only less than eight percent, and in February energy prices practically stagnated year on year. Prices of goods rose by more than three percent, services were more expensive by 2.2 percent. Month-on-month, prices in Germany rose by 0.5 percent in May.
Inflation in Germany has risen well above the European Central Bank’s target. This is defined as inflation, which should stay close to, but at the same time below, two percent per year. Average inflation in the euro area was 1.6 percent in April and the May figure can be expected to be slightly higher.
Eurostat is likely to publish data on May inflation in the second half of June. As early as April, Germany was one of the six eurozone countries to report inflation of more than 2%. On the contrary, Greece or Portugal experienced deflation or a decline in the price level in April.