The Federal Statistical Office (Destatis) has confirmed the inflation rate for May 2026 stood at 2.6%. This figure was slightly lower than in previous months, according to Destatis President Ruth Brand. While high energy prices, stemming from the war in Iran, kept pressure on costs, the fuel discount introduced at the beginning of May helped soften the impact. Overall, consumer prices decreased by 0.2% compared to the previous month, April 2026.
Analyzing year-over-year shifts, energy product prices increased by 6.6% in May 2026 when compared to May 2025. This growth was primarily driven by the fluctuating crude oil market following military actions in Iran and the Middle East. Despite this, the year-on-year rise in energy costs was less pronounced than in April 2026 (+10.1%). A key factor in this moderation was the temporary reduction of the energy tax on gasoline and diesel, which took effect on May 1, 2026. While fuels in May 2026 still rose 18.0% compared to the previous year, this was less than the 26.2% increase recorded in April 2026.
Regarding household energy, light heating oil saw a significant spike of 47.9% in the year-on-year comparison due to crude oil market activity. However, overall household energy was cheaper by 0.8% compared to the previous year, owing to the small proportion of light heating oil in total private household consumption. Electricity prices experienced a drop of 5.0%, while natural gas, including operational costs, fell by 2.9%, and district heating prices decreased by 0.9% relative to the previous year.
In the food sector, prices rose by 0.4% compared to the previous year. Noteworthy increases included fish, fish products, and seafood (+3.7%), as well as sugar, marmalade, honey, and other sweets (+3.6%), fruit (+3.2%), and meat and meat products (+2.8%). Conversely, food fats and oils became cheaper by 15.3% (including butter at -29.1% and olive oil at -6.5%). Potatoes fell by 15.3%, and dairy products decreased by 6.4%, though eggs saw a sharp rise of 14.6%.
On a more granular level, inflation excluding energy amounted to 2.2%, and inflation excluding heating oil and fuels stood at 2.0%. The core inflation rate-excluding food and energy-was 2.5%, falling slightly below the overall rate.
In terms of goods, prices rose by 2.2% compared to the previous year. Consumer goods were up 2.9%, while durable goods increased by 1.0%. Besides energy products (+6.6%) and food (+0.4%), there were increases in information processing equipment (+6.3%), tobacco products (+5.9%), and non-alcoholic beverages (+3.1%). Conversely, household large appliances fell by 2.3%, and consumer electronics dropped by 4.7%.
The service sector saw a total price increase of 3.1% year-on-year. This meant that the inflation rate for services once again exceeded the overall inflation rate, a trend that has been consistent since January 2024 (excluding the previous month, April 2026). Significant increases were seen in social services (+6.7%), combined public transportation (+5.9%), and vehicle maintenance and repair (+4.8%). Housing services and other residential services rose by 3.3%, while catering services increased by 3.0% in May 2026. Furthermore, net cold rents rose by 1.9% year-on-year. Telecommunication services remained unchanged at 0.0%.
Turning to month-on-month figures, the consumer price index declined overall by 0.2% in May 2026. Energy prices fell by 3.6% within the month, largely due to a sharp drop in fuel prices (-7.2%, with diesel fuel dropping by -11.9%), which is also attributed to the introduction of the fuel discount at the beginning of the month. Following the notable increases experienced in March and April 2026, light heating oil was significantly cheaper month-on-month (-7.3%). Overall, food prices decreased by 0.9%, driven by lower prices for fresh vegetables (-9.3%) and butter (-3.1%). In contrast, package holidays saw a price increase of 6.3%.
