BERLIN, June 20 Reuters German producer prices rose at their slowest pace in more than two years in May, according to data released on Tuesday, in a further sign inflation in Europe39;s largest economy is easing.

Producer prices of industrial products were up 1.0 compared with May 2022, the Federal Statistical Office reported. That is the smallest increase since January 202139;s rise of 0.9.

A Reuters poll had indicated a rise of 1.7 yearonyear, after producer prices in April had risen 4.1 on the year.

Compared with the previous month, prices in May fell by 1.4, versus a forecast 0.7 decline.

Producer prices are considered a precursor to the development of the cost of living. If producers raise or lower their prices, this usually has a delayed effect on private households, at least in part.

German inflation, harmonised to compare with other European Union countries, eased to its lowest level in more than a year in May, with consumer prices rising by a lessthananticipated 6.3 on the year.

That marked the lowest montly rise since March 2022, in the aftermath of Russia39;s invasion of Ukraine.

The office publishes more detailed data on its website.

Reporting by Rene Wagner, Writing by Miranda Murray, Editing by Friederike Heine

Source Reuters