FX.co ★ German HICP Turns Negative in May, Signaling Fresh Disinflation Pressure

Germany’s Harmonised Index of Consumer Prices (HICP) slipped into negative territory on a month-over-month basis in May, underscoring renewed disinflation pressures in the euro area’s largest economy. The indicator fell to -0.1% in May 2026, down from a 0.5% month-over-month increase recorded in the previous reading, according to data updated on 12 June 2026.

The latest figure marks a sharp turnaround from the prior month’s momentum, when prices had still been rising at a moderate pace. On a month-over-month basis, the current reading compares the change in prices in May to those in April, while the previous figure reflects how prices moved in April relative to March. The move into negative territory suggests that, at least temporarily, price pressures have eased, a development closely watched by investors and policymakers monitoring the trajectory of inflation in Germany and across the euro area.