BERLIN, May 29 Reuters Inflation in three German states inched up in May, preliminary data showed, suggesting that national inflation in Europe39;s biggest economy may rise slightly, although price growth did decline in one state.

Economists will pay close attention to the national data later on Wednesday, as Germany publishes its figures before a euro zone inflation data release expected on Friday.

The inflation rate in North RhineWestphalia, Germany39;s most populous state, rose to 2.5 yearonyear in May from 2.3 in April. In Bavaria, the rate was up in May at 2.7 from 2.5 and in Saxony it rose to 3.1 from 2.7.

However, the figures were mixed as in Brandenburg the rate nudged down to 2.9 from 3.0. In Hesse and BadenWuerttemberg the rate stayed flat at 1.9 and 2.1 respectively.

Economists polled by Reuters forecast Germany39;s harmonised inflation rate at 2.7 in May, up from 2.4 in April.

The expected rise is due in part to the end of a oneoff effect of a cheap national railway ticket scheme introduced in May 2023 that has lowered public transport prices over the last year, said economists.

Euro zone inflation is expected to edge up to 2.5 in May from 2.4 the previous month, according to economists polled by Reuters.

The European Central Bank will be scrutinising that figure as it looks set to lower interest rates next week after its biggest ever streak of hikes brought down inflation to just above its 2 target.

However, policymakers have said the pace and scope…