The inflation rate in Germany fell significantly in May and at 6.1 has reached its lowest level for more than a year. The price increase at consumer level has thus slowed for the third month in a row, as the Federal Statistical Office announced on Wednesday based on preliminary data. The annual inflation rate in Germany was last lower in March 2022 when it was 5.9 percent.
In March of the current year, the inflation rate fell below the 8 percent mark for the first time since August 2022 at 7.4 percent. The Wiesbaden statisticians had calculated an inflation rate of 7.2 percent for April. According to calculations by the Federal Office, consumer prices fell by 0.1 percent from April to May 2023.
High inflation is a burden
High inflation has been weighing on consumers for months. It saps their purchasing power, people can afford less for one euro. In surveys, many people say that they can hardly make ends meet with their money.
The European Central Bank (ECB) is trying to dampen inflation with higher interest rates. Higher interest rates make borrowing more expensive, which can slow demand. In the medium term, the central bank is aiming for stable prices in the euro area with an inflation rate of two percent. After seven interest rate hikes in a row, the key interest rate in the currency area of the 20 countries is now 3.75 percent, and further increases are expected. According to economists, however, the still high inflation in Germany and in the euro area as a whole will not disappear quickly. (dpa)