The inflation rate dropped from 2.9 percent to 2.6 percent in May, according to estimates released by the Federal Statistical Office. The authority announced on Friday that prices actually fell by 0.2 percent compared to April. The core inflation rate, which excludes food and energy, is consequently expected to be 2.5 percent for May. Notably, the price increases for energy, which had recently been a significant upward driver, moderated in May. This rate fell from 10.1 percent in April to just 6.6 percent. This decrease is likely influenced by the so-called “fuel discount” which has been in effect since May 1st, although the Federal Office did not mention this specific factor in its estimation release, contrasting with several regional statistical offices that had measured the same effect.
Mixed
