German Inflation Rate Fell More Than Expected in May on Easing Energy, Food Prices

By Ed Frankl

Germany's annual inflation rate fell more than expected in May, as energy and food prices eased further.

The consumer price index--a measure of what consumers pay for goods and services--rose 6.1% on year in May measured by national standards compared with a 7.2% rise in April, preliminary data from the German statistics office showed Wednesday.

The reading was below expectations of 6.5% by economists polled by The Wall Street Journal, and the lowest since March 2022.

The decline of the inflation rate was driven by easing energy prices, which rose 2.6% in May on year compared with 6.8% in April. Food inflation remained high, but slowed too, to 14.9% in May from 17.2% in the prior month.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

05-31-23 0825ET