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German Inflation Rate Eases to 2.1% in May

  • Germany's federal statistics office reported that inflation eased to 2.1% in May 2025, nearing the ECB's target.
  • This reduction comes after several months of steady inflation, supported by modest increases in wages, decreased energy costs, and a robust euro currency.
  • Preliminary data harmonized across Europe showed inflation declined from 2.2% in April, slightly above analysts' 2% forecast.
  • Traders price a 96% chance of a 25 basis point ECB interest rate cut at the June 5 meeting due to this inflation trend.
  • The inflation slowdown in Germany suggests a possible monetary easing by the ECB amid economic uncertainty in Europe's largest economy.
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destatis.de broke the news in on Friday, May 30, 2025.
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