Inflation fell in four key German states in May, preliminary data show. This suggests Germany's national inflation rate could ease this month.
In Bavaria, the rate dropped to 2.6% from 2.9%. In North Rhine-Westphalia, it decreased to 2.4% from 2.7%. In Baden-Wuerttemberg, it fell to 2.4% from 2.6%. In Lower Saxony, it went to 2.7% from 3.0%.
The war in Iran had pushed up energy and raw material prices. The German government now expects inflation to accelerate to 2.7% this year and 2.8% in 2027.
Economists forecast a harmonised national inflation rate of 2.8% in May, down from 2.9% in April. National figures will be released later on Friday.
The German data comes ahead of the euro zone inflation release on Tuesday. The European Central Bank kept rates on hold in April but may act next month if inflation rises.
