Germany Inflation


Inflation rebounds in May after falling to lowest level in over two years

In May, consumer prices added 0.4% over the previous month, according to a preliminary flash estimate released by the Federal Statistics Office (Destatis) on 29 May. The print contrasted the 0.5% drop recorded in April and exceeded market expectations of a 0.2% increase.

Following an almost uninterrupted downward trend since August 2012 and after hitting its lowest level in two and a half years in April (1.2% year-on-year), annual headline inflation jumped to 1.5% in May, exceeding market expectations that had annual consumer prices rising to 1.3%. Annual average inflation stabilized at April's 1.8%.

Meanwhile, annual HICP inflation (based on the harmonized index of consumer prices) followed suit and rose from 1.2% in April to 1.7% in May.

The Bundesbank expects inflation to average 1.5% in 2013, before inching up to 1.6% in 2014. FocusEconomics panellists expect inflation to average 1.6% in 2013, which is down 0.1 percentage points from the previous month's forecast. For 2014, panellists expect inflation to increase to 1.9%.

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Germany Inflation Chart

Germany Inflation May 2013

Note: Month-on-month and year-on-year changes of consumer price index in %.
Source: Federal Statistics Office and FocusEconomics calculations.

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