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May 19, 2025, Berlin: Apricots are sold on green schedule for 7.98 euros per kilogram. Grapes and papaya are also offered.
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Germany’s annual inflation reached 2.1% in May to approach the 2% European Central Bank’s goal, but having come to a slightly hotter than analysts’ estimates, preliminary data statistics showed on Friday.
Print is compared with 2.2% Reading in April and with a reuters projection of 2%.
The print is harmonized throughout the euro area for comparability.
The so -called basic inflation, which deprives more volatile food and energy prices, slightly immersed from 2.8% to 2.9% in May. The service, which looked closely, printed, weeding sharply, entering 3.4% compared to 3.9% in the previous month.
Energy prices decreased markedly for the second consecutive month, by 4.6%in May.
The Consumer Price Index in Germany has closed the European Central Bank in recent months, in a positive signal against the background of constant uncertainty regarding the economic worldview for the largest economy in Europe.
This goal must be achieved in the coming months, Karsten Brzeska, the head of the world macro in Ing, said in the note on Friday.
“Look forward, at least, in the near future inflation of German, it will probably continue its decline, probably falling below 2% in the coming months,” he said.
The opposite developments are expected to form a forecast for inflation and – paired with less energy prices – will lead to a printing, which hovers about 2% during the second half of the year, the BRZSK noted.
“On the one hand, the cooling of the labor market should take the pressure on wages, which means that the inflation pressure; on the other hand, the financial stimulus of the government can raise the inflation pressure by the end of the year and abroad,” he explained.
Internal and global issues raise the expectations of the financial future of Germany.
On the one hand, US President Donald Trump’s tariffs can damage economic growth, given the status of Germany as an export country, although the potential influence of such duties on inflation remains unclear. But frequent shifts in politics and development unraveling the picture.
On the other hand, the German government has recently been minted and made the economy a top priority. Questions are delayed when and to what extent new plans of the Berlin administration may be implemented.
The ECB is scheduled to make its next interest rate on June 5, and traders late prices in more than 96% of chances of reducing interest rate in a quarter of points, Lseg reports. Back in April, the Central Bank reduced the deposit rate by 25 basic points to 2.25%.
Brzeski Ing Brzeski said German inflation should bring “help” to the ECB because it suggests that the disinfection is ongoing and added that despite the latest developments concerning tariffs, the Central Bank has a stronger case for further retention than the content.
