Market Analysis

In May, preliminary data revealed a slight uptick in inflation across three German states, suggesting a potential national increase, although the situation varied. Germany's most populous state, North Rhine-Westphalia, saw its inflation rate rise to 2.5% year-on-year from April's 2.3%. Bavaria followed suit with an increase to 2.7% from 2.5%, while Saxony rose to 3.1% from 2.7%. 

Conversely, Brandenburg experienced a slight decrease to 2.9% from 3.0%. In Hesse and Baden-Wuerttemberg, rates remained unchanged at 1.9% and 2.1%, respectively. 

Economists surveyed by Reuters anticipate Germany's harmonised inflation rate to reach 2.7% in May, up from 2.4% in April. National inflation data is eagerly awaited later today, preceding the euro zone's expected inflation rise to 2.5% in May from 2.4% the previous month.

Paraphrasing text from "Reuters" all rights reserved by the original author.