FX.co ★ Germany Inflation Confirmed at 2.6% in May

Germany’s annual inflation rate eased to 2.6% in May 2026 from a two-year high of 2.9% in April, in line with preliminary estimates. Price pressures moderated in several categories, including food and non-alcoholic beverages (0.7% vs. 1.5% in April), alcoholic beverages and tobacco (3.8% vs. 4.3%), housing and utilities (1.4% vs. 1.6%), and restaurants and hotels (2.7% vs. 3.4%).

By contrast, energy prices remained elevated, advancing 6.6% amid the US–Iran war. However, this was slower than the 10.1% increase recorded in the previous month, reflecting the temporary reduction of the energy tax on gasoline and diesel. Inflation also picked up in health (2.3% vs. 2.0%) and in recreation and culture (2.1% vs. 1.1%).

On a monthly basis, consumer prices fell by 0.2% in May after a 0.6% rise in April, again matching preliminary estimates. Meanwhile, the annual HICP rate edged down to 2.7% from 2.9% in April, remaining well above the European Central Bank’s 2% target.