Germany’s annual inflation reached 2.1% in May

Germany’s annual inflation decreased to 2.1% in May from 2.2% in April, with a significant drop in energy prices contributing to this decline.

The core inflation rate fell from 2.8% to 2.9%, while the services PMI decreased to 47.20 points, highlighting ongoing economic challenges.

The ECB is expected to implement a quarter-point rate cut on June 5, as household consumption and capital formation improved, leading to a 0.2% growth in Q1.