German inflation hits 2.8% in May

German inflation exceeded expectations, reaching 2.8 per cent in May, according to preliminary data from the federal statistics office released on Wednesday.

Analysts polled by Reuters had anticipated a reading of 2.7 per cent, following a 2.4 per cent increase in consumer prices in April. Economists are closely monitoring the data from Europe’s largest economy ahead of the eurozone’s expected inflation release on Friday.

The European Central Bank (ECB) is poised to lower interest rates next week in response to subdued inflation, which remained just above its 2 per cent target.

Despite cooling energy and food prices, core inflation, excluding volatile elements, remained high at 3.0 per cent in May, unchanged from the previous month.