German inflation higher than expected ahead of ECB rates decision

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By Rachel MoreBERLIN (Reuters) -German inflation rose slightly more than forecast to 2.8% in May, although economists said an increase had been expected and should not alarm European Central Bank policymakers ahead of their interest rate decision next week.Analysts polled by Reuters had forecast a reading of 2.7%, after a year-on-year increase in consumer prices of 2.4% in April, based on data harmonised to compare with other European Union countries.Economists are paying close attention to the data from Germany – Europe’s biggest economy – ahead of the release of inflation figures from the wider euro zone on Friday.The ECB looks set to lower interest rates next week after its biggest ever streak of hikes brought down inflation to just above its 2% target but …

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