May 19, 2025, Berlin: Apricoses are sold in a green grocan for 7.98 euros per kilogram. Grapes and papaya are also offered.
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In May, the annual inflation of Germany reached 2.1% in May, which approached the 2% goal of the European Central Bank, but somewhat hotter than analyst estimates, as preliminary data from the Destatis statistics office showed on Friday.
The pressure compares a 2.2% reading in April and a Reuters projection of 2%.
The pressure is harmonized for comparability in the euro zone.
The so-called core inflation, which buries the more volatile food and energy prices, slightly dropped from 2.8% to 2.9% in May in April. In the meantime, the densely observed service pressure detached and was 3.4% compared to 3.9% in the previous month.
The second month in a row was significantly clear and fell by 4.6%in May.
The Germany's consumer price index has completed 2% of the economic outlook for the largest economy in Europe in a positive signal from the European Central Bank in the past few months.
This goal should be achieved in the coming months, said Carsten Brzeski, Global Head of Macro at ING, in a note on Friday.
“With a view to the closer term of office, German inflation will probably continue its downward trend and will probably fall below 2% in the coming months,” he said.
Opposite developments are expected to influence the prospects for inflation and – paired with lower energy prices – to result in the pressure hovering around 2% of the brand during the second half of the year, BRZESKI noted.
“On the one hand, the cooling of the labor market should take out the wage pressure and consequently inflation -related pressure. On the other hand, the fiscal incentive of the government should increase the inflationary pressure towards the end of the year and beyond,” he said.
Domestic and global issues have met the expectations of the financial future of Germany.
On the one hand, the tariff of US President Donald Trump could damage economic growth because Germany's status as an export-dependent country, although the potential effects of such tasks on inflation are still unclear. But frequent political shifts and developments have spoiled the picture.
On the other hand, the newly shaped government of Germany begins to make itself work and has made the economy a top priority. Linger questions when and to what extent the policy plans of the new Berlin administration could be realized.
The ECB is scheduled to make its next interest decision on June 5. According to LSEG data, the dealer has a chance of over 96% for a quarter -point reduction. Already in April the central bank had reduced its deposit system by 25 basis points to 2.25%.
Ing's Brzeski said that the German inflation pressure on Friday should bring the ECB “relief” because disinflation continues.
The yields of the German Confederation were somewhat higher after the data was published. The 2-year federal return rose via a base point to 1.719%, while the return of the 10-year federal government was less than a base point higher to 2.521%.
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