BERLIN: Annual inflation in Germany returned to an above-zero level in May, but remained far below European Central Bank’s target, said German federal statistics office Destatis here the other day.
Germany’s consumer price index (CPI) increased year-on-year by 0.1 percent in May after falling by 0.1 percent in the previous month, preliminary calculations of German statisticians showed.
According to Destatis, rents and other services prices increased in May, but energy prices continued its downward trend.
Measured with the harmonized index of consumer prices (HICP), the European Union’s yardstick, German annual inflation stood at zero in May, up from the minus 0.3 percent in April.
It remained far below European Central Bank’s price maintenance target of “below, but close to” 2 percent.
The central bank is expected to keep its current expansionary monetary policy unchanged when it meets on Thursday. In April, inflation rate in the eurozone fell to minus 0.2 percent from zero in March.
Analysts expect the inflation rate in May, due to be released on Tuesday, to reach minus 0.1 percent.
