BERLIN (Reuters) – Inflation in Germany slowed at an annualized rate in May to its lowest since March 2022, the first estimate released by the Federal Statistical Office on Wednesday showed, suggesting a favorable trend for inflation. scale of the euro zone, after the good figures recorded in France and Spain.

The consumer price index in harmonized European data (HICP) rose by 6.3% over one year and fell by 0.2% over the month.

Economists polled by Reuters were anticipating an inflation rate up 6.8% year on year, after +7.6%, and 0.2% month-on-month, after +0.6% in April.

These figures, combined with weak growth indicators, reinforce the arguments in favor of greater caution from the European Central Bank in raising its rates in the coming months.

Inflationary pressures have moderated with the introduction of a subsidized transport package of 49 euros allowing unlimited travel on public transport.

In addition, there was no base effect on energy and food prices.

So far, data releases in several countries across Europe – with the notable exception of Italy – suggest that eurozone inflation may have eased more than expected in May.

“It is clear that the decline was more significant than what had been expected by analysts and I think that is good news,” said Luis de Guindos, the vice-president of the ECB, on Wednesday before the publication. German national figures.

While many officials, including the influential German and Dutch central bank presidents, have hinted at a rate hike in July, few – if any – are prepared to discuss monetary policy beyond that date.

Core inflation has remained very high in recent months, driven by accelerating wage growth in services, and trends suggest that a major turnaround is only likely in the future. autumn.

(Miranda Murray and Balazs Koranyi, Laetitia Volga, editing by Kate Entringer)

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