Data from the statistics office of Destatis showed that Germany’s annual inflation hit 2.1% in May, lower than its previous reading in April, which was 2.2%. The inflation data also came in slightly hotter than analyst estimates and is approaching the European Central Bank’s 2% target.

BERLIN (Reuters) -German inflation eased further in May but slowing less than forecast to 2.1%, preliminary data from the federal statistics office showed on Friday. Analysts polled by Reuters had forecast a reading of 2.

Germany's harmonized consumer inflation fell to 2.1% in May, according to preliminary data. The rate is nearing the European Central Bank's 2% target. Economists polled by Reuters had been expecting the reading to come in at 2%.