German inflation slows to 2.7 percent as core rate rises
German preliminary inflation fell to 2.7% in May while core inflation accelerated to 2.5%, indicating broadening cost pressures. The data precedes the euro zone price report and increases the likelihood of European Central Bank policy action next month.
Germany inflation slowed to 2.7% in May as energy price volatility subsided. The reading beat the 2.8% forecast from Reuters analysts and fell from 2.9% in April. Sticky core price growth now pressures the European Central Bank to consider policy action next month.
### Core Inflation Accelerates Despite Headline Drop While the headline rate cooled, core inflation—excluding food and energy—rose to 2.5% in May from 2.3% in April. Data from Destatis released on Friday showed cost pressures related to the Iran conflict spreading into the broader economy.
