German Consumer Prices in May Rose in Line With Forecasts -- Update

--German consumer prices rose 2.5% on year by national standards, in line with forecasts

--The inflation rate reached a level last recorded in September 2011

--Consumer prices rose 0.5% on month by national standards and 0.3% by EU-harmonized standards

By Maria Martinez

German consumer prices rose in May, confirming preliminary data, the German statistics office Destatis said Tuesday.

Consumer prices rose 2.5% on year measured by national standards, in line with the forecasts of economists polled by The Wall Street Journal. The inflation rate rose for the fifth month in a row and reached a level which was last recorded in September 2011, almost ten years ago, Destatis said.

Prices rose 2.4% on year by European Union-harmonized standards, also in line with forecasts.

Consumer prices rose 0.5% on month by national standards and 0.3% by EU-harmonized standards, both as forecast.

The prices of goods rose 3.1% on year and food prices rose 1.5% on year, Destatis said.

Energy-product prices were 10% higher than a year earlier. After the 7.9% rise in April, the on-year price increase accelerated and had an upward effect on the inflation rate.

The increasing inflation rate was partly attributable to temporary special effects, in particular the carbon charge introduced at the beginning of the year and low energy product prices recorded a year earlier, Destatis said.

Excluding energy prices, the inflation rate would have been 1.8% in May instead of 2.5%.

The prices of services were up 2.2% in May compared with the same month a year earlier, Destatis said.

The coronavirus pandemic and its related restrictions caused pricing collection problems again in May as some products weren't available in the market, Destatis said.

Write to Maria Martinez at maria.martinez@wsj.com


  (END) Dow Jones Newswires
  06-15-21 0238ET
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