German inflation higher than expected ahead of ECB rates decision

By Rachel More

BERLIN (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 -…