S&P: Softening inflation in Germany adds uncertainty to future ECB rate hikes
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```htmlTimo Klein from S&P Global Market Intelligence stated in a report that after data in May came in weaker than expected, Germany's inflation rate is now more likely to reach a peak of around 3.5% by the end of 2026, rather than 4.0%. The overall inflation rate in May fell to 2.6% from 2.9% in April. "While the fuel tax rebate is a key factor, food, hotel, and restaurant prices also unexpectedly declined," he said. Klein indicated that although the European Central Bank is expected to tighten monetary policy at its next meeting in June, expectations for a follow-up 25 basis point rate increase in July are less certain. He added that further actions will depend on the Middle East war and the upcoming eurozone inflation data for May and June.```
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