German inflation eased to 2.6% year-on-year in May, down from 2.9% in April. Meanwhile, French inflation accelerated to 2.8% in May, the highest level since February 2024.
The differing inflation trends in Europe's two largest economies will be closely watched by the European Central Bank as it considers future monetary policy decisions.
German inflation eased slightly to 2.6% year-on-year in May, down from 2.9% in April, according to data confirmed by the federal statistics office. In contrast, consumer prices in France rose 2.8% year-on-year in May, marking the highest level since February 2024, as confirmed by statistics office INSEE. The harmonized inflation rate in France continued its acceleration after a 2.5% increase in April. Historically, Germany's inflation rate has averaged 2.49% from 1950 to 2026, with a record high of 11.70% in October 1951. The largest components within Germany's consumer price index include Housing (32%), Transport (13%), Recreation, entertainment & culture (11%), and Food & non-alcoholic beverages (10%).
Pick the topics you care about. Get only what matters, on your cadence.