Business

The pillar of the German economy has a problem. Deflation has deepened


The prices of German industry in May 2025 were 1.2 percent. Lower than in May 2024, in April, the annual change rate was -0.9 percent, so you can talk about accelerating deflation tendencies. Counting a month to month, there was a drop in prices by 0.2 percent.

The main reason for the decline in prices year -on -year were energy prices, which decreased by 6.7 percent, including mainly electricity, lower by as much as 8.1 percent. year to year – explains Destatis. Natural gas got cheaper by 7.1 percent yard, and car fuel prices fell by 6.5 percent This may result both from supply (lower global oil and gas prices) and a decrease in demand in the economy.

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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