Germany May preliminary CPI +2.5% vs +2.3% y/y expected

Latest data released by Destatis - 31 May 2021

• Prior +2.0%
• CPI +0.5% vs +0.3% m/m expected
• Prior +0.7%

• HICP +2.4% vs +2.3% y/y expected
• Prior +2.1%
• HICP +0.3% vs +0.3% m/m expected
• Prior +0.5%

The beat on the headline reading was to be expected after the state readings earlier as pointed out here. Nonetheless, it marks the highest reading since September 2011.

This likely owes to some base effects as well but the higher month-on-month readings also suggest that there are rising price pressures at play too.

That will be the thing the ECB may have to be wary about over the next few months.