Brandenburg Gate in Berlin, Germany

Germany Inflation May 2019

Germany: Harmonized inflation eases in May

Harmonized consumer prices rose 0.3% month-in-month in May, down from the 1.0% increase logged in April. May’s moderation came on the back of softer price increases for alcoholic beverages and tobacco; utilities; and transport, while prices for clothing and footwear; communication; recreation and culture; and education fell.

Harmonized inflation, meanwhile, decelerated from 2.1% in April to 1.3% in May; annual average harmonized inflation inched down to 1.9% from 2.0%. Lastly, annual average consumer price inflation was stable at April’s 1.8% in May.

Commenting on inflation developments in Germany, Carsten Brzeski, chief economist at ING Germany, noted that core inflation remains subdued in the country, and in fact, the eurozone with recent data showing “that core inflation […] is still moving sideways and actually has been doing so since 2015. The ECB’s hope that headline inflation would move towards the ECB’s medium-term aim is increasingly being derailed rather than delayed. In fact, if it were not for oil prices, the last years of monetary stimulus have avoided a further drop in underlying inflation but have not succeeded in bringing inflation close to target.” Brzeski continued to state that “as a consequence, even though it’s not our base case, additional easing measures over the summer should not be ruled out.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest