German inflation rose to 2.4% in May compared to a year earlier, with food prices up by 0.6% and service prices by 3.9%.
Despite the increase in inflation, the ECB is still expected to cut rates at its upcoming meeting, aiming to converge inflation towards the 2% target.
[Policymakers] had anticipated a bumpier inflation trend; the slight increase in German inflation is unlikely to alter plans to proceed with rate cuts.
German wages also saw a significant increase, rising by 6.4% in nominal terms.
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