The German economy is showing signs of a slow recovery.

According to the Vietnam News Agency correspondent in Germany, the German Federal Statistical Office (Destatis) announced on June 12 that inflation in Germany fell slightly in May to 2.6%, from 2.9% in April – the highest level since January 2024, possibly due to fuel tax cuts.

People shop at a supermarket in Berlin, Germany. (Photo: THX/VNA)

In May, energy prices were 6.6% higher than the same period in 2025, but still lower than the 10.1% year-on-year increase seen in April.

Destatis points to the German government 's decision to cut fuel taxes by 0.17 euros ($0.20) per liter on diesel and gas as a possible reason for the improved inflation figures.

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Destatis President Ruth Brand said: "Energy prices remain high due to the conflict with Iran, although the reduction in fuel taxes, effective from the beginning of May, may have eased the price increase."

Annual inflation in Germany is projected to end the year at around 3%, but the German Council of Economic Experts warns that this figure could rise to 3.5% if the Strait of Hormuz – a crucial global oil shipping choke point – remains closed due to the ongoing conflict between the US-Israel and Iran.

The continued closure of the strait and the temporary status of fuel tax cuts – which are set to expire in June – could lead to further increases in food and service prices for German consumers.

VNA

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Source: https://nhandan.vn/kinh-te-duc-cho-thay-dau-hieu-phuc-hoi-cham-chap-post968933.html