Germany’s Inflation Eases to 2.6% in May

2026-05-29 12:07 By Joana Ferreira 1 min. read

Germany’s consumer price inflation slowed to 2.6% year-over-year in May 2026, down from an over two-year high of 2.9% in April and slightly below market expectations, according to preliminary data.

Despite the decline, inflation remains above the ECB’s 2% target.

Goods inflation fell to 2.2% from 2.9%, driven by easing energy (6.6% vs. 10.1%) and food (0.4% vs. 1.2%) price pressures.

However, services inflation accelerated to 3.1%, rebounding from a three-and-a-half-year low of 2.8% in April.

Core inflation, excluding food and energy, rose to 2.5%, up from a five-year low.

Meanwhile, the EU-harmonized annual inflation rate also eased to 2.7% from 2.9%.



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