Fuel tax cut helps cool German inflation to 2.6% in May

WorldBusiness & Finance
29 May 2026 • 8:50 PM MYT
DPA International
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Image from: Fuel tax cut helps cool German inflation to 2.6% in May
The prices for diesel and petrol can be seen at a filling station. (is associated with: «Fuel tax cut helps cool German inflation to 2.6% in May») Sebastian Gollnow/dpa

Germany's inflation rate eased markedly to 2.6% in May, according to a preliminary estimate released by the Federal Statistical Office on Friday.

Consumer prices had risen by 2.9% year-on-year in April, the highest rate since January 2024.

The war in Iran has pushed up fuel costs and weighed on economic growth

Household energy and motor fuel prices were 6.6% higher in May than a year earlier, according to the data.

However, a temporary fuel tax cut introduced by the government helped curb price pressures in May. The measure, in effect from May 1 to June 30, reduced energy taxes on diesel and petrol by around €0.17 ($0.20) per litre.

In April, energy prices in Germany had still been more than 10% higher than a year earlier.