German inflation holds steady at 2.1%

(Sharecast News) - Consumer price inflation held steady in May, while wholesale price growth slowed for the third straight month, according to the Federal Statistical Office on Friday. The year-on-year change in the consumer price index was 2.1% last month, unchanged from the previous month and in line with the preliminary estimate released two weeks ago, Destatis said.

This matched the lowest reading since October 2024, as services inflation slowed to 3.4% from 3.9%, food inflation held steady at 2.8% and energy prices fell 4.6% compared with a 5.4% fall in April.

Core inflation, which strips out volatile items like food and energy, fell to 2.8% year-on-year from 2.9%.

Meanwhile, wholesale price inflation slowed to an annual rate of 0.4% in May, down from 0.8% in April, continuing to pull back after hitting a recent two-year high of 1.6% in February.