FX.co ★ Germany’s Inflation Holds at 2.1% in May

Germany's consumer price inflation held steady at 2.1% in May 2025, aligning with April’s figure and marking the lowest rate since October 2024, as indicated by a preliminary assessment. This level slightly surpassed market forecasts of 2.0% and remained marginally above the European Central Bank's target for a seventh consecutive month. Inflation for services decreased to 3.4% from April’s 3.9%, whereas inflation for goods increased to 0.9% from 0.5%, primarily due to a lesser decline in energy prices (-4.6% compared to -5.4%). Food prices maintained their inflation rate at 2.8%. Core inflation, excluding the volatile segments of energy and food, marginally decreased to 2.8% from 2.9% in the prior month. On a month-to-month basis, consumer prices saw a 0.1% rise, a slowdown from the 0.4% increase observed in April.