Prices spiraled to unimagined heights, especially for food and energy. Inflation now seems to be running out of steam. But it is probably too early to give the all-clear.
Inflation in Germany continues to decline. Annual inflation fell to 6.1 percent in May, the lowest since March 2022. In May, broad-based consumer price inflation slowed for the third consecutive month from high levels. According to calculations by the Federal Statistical Office, the prices for both food and energy rose much less sharply than in April of the current year. The Wiesbaden authorities confirmed their provisional information from two weeks ago on Tuesday.
“The inflation rate has thus continued to weaken, but remains at a high level,” said Ruth Brand, President of the Federal Statistical Office.
High inflation has been weighing on consumers for months. It saps their purchasing power, people can afford less for one euro. In surveys, many people say that they can hardly make ends meet with their money.
In March of the current year, the inflation rate fell below the 8 percent mark for the first time since August 2022 at 7.4 percent. The Federal Office had calculated an inflation rate of 7.2 percent for April.
According to the calculations, consumer prices in Germany fell by 0.1 percent from April to May of the current year. However, economists recently warned against giving the all-clear signal too early: The inflation in many services – such as tourism – driven by rising wage costs is only just getting going.
Source: Stern
