AI Data Insight
Germany's latest Q2 (May 2026) core HICP YoY inflation rate reached 2.6%, a significant rebound from the previous value of 2.3%. Driven by energy spillover costs pushed up by Middle East geopolitics and the stickiness of services inflation fueled by wage growth, the inflation cooling trend has been thwarted, and the market is reassessing the subsequent tightening risks of the European Central Bank (ECB).