German annual inflation confirmed at 2.8% in May

12th Jun 2024 07:14

(Sharecast News) - The final reading of Germany inflation for May confirmed that annual price growth had picked up to a four-month high, with numbers in line with the preliminary estimate released two weeks ago.

The harmonised index of consumer prices, harmonised across all EU members for better comparisons, increased by 0.2% last month, easing from 0.6% growth in April, according to Destatis, matching the initial estimate on 29 May.

The annual change in the CPI was unrevised at 2.8% in May, up from 2.4% the month before and the highest reading since January.

While price pressures have eased significantly since the 6%-plus inflation levels seen last summer, the annual rate moved further away from the European Central Bank's 2% target.

"The inflation rate is slightly up again, mainly due to the continued increase in service prices", said Ruth Brand, president of the Federal Statistical Office. "By contrast, energy and food prices have had a dampening effect on overall inflation since the beginning of the year", Brand said.

The prices of services were 3.9% higher than last year, up from 3.4% year-on-year growth in April, while food price inflation picked up to 0.6% from 0.5% and energy price deflation eased to -1.1% from -1.2%.