Anticipated Inflation Rate for May 2025 predicted to rise by 2.1%
Preliminary Inflation Data for May 2025 Reveals 2.1% Year-on-Year Increase in Germany
Preliminary data released by the Statistical Office of the Federal Government (Destatis) on May 30, 2025, indicates that Germany's inflation rate for May 2025 stands at 2.1%. This represents a slight increase compared to the 2.0% recorded in April 2025.
The Consumer Price Index (CPI) reflects a 0.1% monthly increase from April 2025. Meanwhile, the Harmonized Consumer Price Index also shows a year-on-year rise of 2.1% and a 0.2% increase month-on-month.
Several factors contributed to this inflation rate. Energy prices experienced a significant decrease, particularly for motor fuels, solid fuels, and heating oil, resulting in a 5.4% year-on-year decline in energy prices in April 2025. Conversely, food prices continued to rise, though at a slower pace compared to the previous months, increasing by 2.8% year-on-year in April 2025.
The services sector experienced an acceleration in inflation, reaching a three-month high of 3.9% in April 2025. This contributes to the overall inflation rate. Meanwhile, core inflation, which excludes food and energy prices, rose to 2.9% in April 2025, reflecting higher prices in other product groups. The expected core inflation rate for May 2025 is 2.8%, indicating sustained underlying inflationary pressures.
In comparison, the overall inflation rate of 2.1% is impacted by the decline in energy prices, offsetting the moderate increase in food prices. Meanwhile, core inflation remains higher due to persistent price pressures in other sectors.
Sources:[1] Destatis, Press Release, May 30, 2025.[2] Destatis, Consumer Price Index, April 2025.[3] Destatis, Harmonized Consumer Price Index, April 2025.[4] Destatis, Energy Prices, April 2025.[5] Destatis, Core Inflation, April 2025.
Other sectors, apart from energy, experienced an increase in prices, contributing to the overall core inflation of 2.9%. This rise in other finance costs may have a long-term impact on Germany's overall inflation rate.
