May 30, 2024 07:57 GMT
Bundesbank SA Shows Sequential Services Inflation Reaccelerating
GERMAN DATA
The Bundesbank's estimate of seasonally-adjusted May CPI shows a clear sequential uptick in core inflation after April's negative print, driven by an incline in service inflation, which was stronger than estimated by MNI. The less volatile 3mma SA measure shows services inflation accelerating continuously.
- Overall core inflation increased to 0.35% M/M (vs -0.09% in April; and 4.3% annualized), and services inflation to 0.71% M/M (vs 0.00% Apr; 8.9% annualized). On a 3mma comparison, services inflation came in at 5.5% - its highest rate since January 2023 (vs 5.1% Apr).
- On a more disinflationary note, manufactured goods ex-energy meanwhile continued printing in deflationary territory, at -0.17% M/M (vs -0.17% Apr; -2.0% annualized).
- Overall, the data affirm the narrative that underlying German inflation remains sticky.
MNI, Bundesbank
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