German inflation rate slows to 6.1% in May 2023: Destatis

Energy product prices in May 2023 stood 2.6 per cent higher than in the same period a year earlier, marking a notable deceleration from the 6.8 per cent increase recorded in April 2023. The rise in energy product prices is now significantly lower than overall inflation. This slower growth in energy prices since March 2023 primarily originates from a base effect related to significant price increases last year following the Russian attack on Ukraine. The changing energy prices can be attributed to various factors, such as current price reductions at upstream stages in the economy.

When energy prices were discounted, the inflation rate for May 2023 stood at 6.5 per cent. When both energy and food prices were excluded, the rate dropped further to 5.4 per cent. The CPI, excluding energy and food, crossed the five-per cent threshold in December 2022 (5.2 per cent) and has continued to rise since the start of 2023, hitting 5.8 per cent in both March and April. The increase was slightly less pronounced in May than in previous months, as per Destatis.

In May 2023, overall goods prices were up by 7.7 per cent compared to the same month of the previous year. A significant price hike was observed for non-durable consumer goods, at 9.1 per cent, mainly attributed to the rise in food prices. Durable consumer goods saw a 5.3 per cent price rise in comparison with May 2022.

In a month-on-month comparison, the CPI dipped slightly by 0.1 per cent in May 2023 from April 2023. The decrease in energy prices was slightly more pronounced at minus 1.4 per cent.

Fibre2Fashion News Desk (DP)