Germany's Inflation Stable at 2.1 Percent in May

Germany's Inflation Stable at 2.1 Percent in May

zeit.de

Germany's Inflation Stable at 2.1 Percent in May

Germany's inflation rate held steady at 2.1 percent year-on-year in May 2025, driven by decreasing energy prices (-4.6 percent) but offset by rising service prices (3.4 percent) and food costs (2.8 percent).

German
Germany
PoliticsEconomyGermany InflationEconomic GrowthEnergy PricesConsumer Prices
Statistisches BundesamtIfo-InstitutDeutsche BundesbankDws
Ruth BrandUlrike Kastens
What is the overall inflation rate in Germany for May 2025, and what are the main factors contributing to this figure?
In May 2025, Germany's inflation rate remained stable at 2.1 percent year-on-year, matching April's figure. Month-on-month, consumer prices rose by only 0.1 percent. This stability is largely due to decreasing energy prices, which were 4.6 percent lower in May compared to the previous year.
How do the price changes in energy and services sectors compare, and what are the underlying economic explanations for these differences?
The comparatively moderate inflation in May is primarily attributed to falling energy prices (down 4.6 percent year-on-year), contrasting with a persistent rise in service prices (up 3.4 percent). This discrepancy highlights the uneven impact of price changes across different sectors, with food prices also increasing by 2.8 percent.
What are the predictions for Germany's inflation rate in the coming years, and how does this compare to the Eurozone's projected inflation?
While overall inflation remains slightly above two percent, the core inflation rate (excluding energy and food) stands at 2.8 percent, indicating persistent inflationary pressures. Experts predict that Germany's inflation will remain just above two percent in the second half of 2025, unlike the Eurozone, which is expected to see temporarily lower rates. The Ifo Institute forecasts inflation at 2.1 percent for 2025 and 2.0 percent for 2026.

Cognitive Concepts

3/5

Framing Bias

The headline and introduction frame the inflation report as relatively positive, emphasizing the moderation in price increases and the decrease in energy prices. This framing might downplay the continued high inflation in food and services, and the ongoing struggles faced by consumers.

2/5

Language Bias

The language used is largely neutral and factual, relying on data from official sources. However, phrases such as "Hartnäckig hält sich dagegen die überdurchschnittlich hohe Teuerung bei Dienstleistungen" (stubbornly persists the above-average high inflation in services) could be interpreted as slightly loaded, implying a negative connotation to the persistence of high service prices.

3/5

Bias by Omission

The article focuses primarily on overall inflation and doesn't delve into the potential impact of rising food prices on different socioeconomic groups. It also lacks detail on specific government policies aimed at mitigating inflation or supporting vulnerable populations.

1/5

False Dichotomy

The article doesn't present a false dichotomy, but it could benefit from acknowledging the complexities of inflation and the various contributing factors beyond energy and food prices.

1/5

Gender Bias

The article uses gender-neutral language for the most part, but uses "Verbraucherinnen und Verbraucher" which translates to "consumers" (note the inclusion of both masculine and feminine forms), which shows a small effort to use inclusive language. There is no significant gender bias detected.

Sustainable Development Goals

No Poverty Negative
Direct Relevance

High food prices disproportionately affect low-income households, reducing their purchasing power and potentially increasing poverty rates. The article highlights significant price increases for essential food items like butter, chocolate, and fruit, exacerbating this issue.