Inflation in Germany rose again in May, primarily due to the continued increase in service prices.

Germany's Federal Statistics Office stated on Latest news of Puton foreign exchange explosionWednesday that due to rising service prices, the country's inflation rate increased in May, confirming preliminary data.

The EU-harmonized German consumer price index rose by 2.8% year-on-year in May. In contrast, the year-on-year increase in April was 2.4%.

Ruth Brand, the head of the statistics office, said, "The inflation rate has risen slightly again, mainly due to the continued increase in service prices."

Service prices increased by 3.9% in May compared to the same period last year, whereas last month's increase was 3.4%.

This significant acceleration in year-on-year price increases can partly be attributed to the base effect disappearing after the end of the nationwide cheap railway travel scheme launched in May 2023.

Brand stated, "In contrast, energy and food prices have had a dampening effect on overall inflation since the beginning of the year."

Energy product prices fell by 1.1% compared to May 2023, while food prices rose by 0.6%, with food inflation significantly lower than the overall inflation rate.

Excluding the volatile prices of food and energy, the core inflation rate was 3.0% in May, unchanged from April.

The European Central Bank closely monitors the core inflation rate. Last week, the central bank conducted its first rate cut since 2019, stating that progress had been made in combating inflation, although acknowledging the fight is not over.

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