German Inflation Weakest In 8 Months

(RTTNews) - Germany's inflation eased to the lowest in eight months in June, as initially estimated, due to continued decline in energy prices and slowdown in food inflation, final data from Destatis showed on Thursday.

Consumer price inflation slowed to 2.0 percent in June, in line with flash estimate, from 2.1 percent in May.

A similar lower rate was last reported in October 2024. With the latest slowdown, inflation hit the European Central Bank target.

"In addition to the continued decline in energy prices, food price inflation slowed in particular," Destatis President Ruth Brand said. "On the other hand, the above-average increase in service prices continued to drive up inflation," Brand added. Excluding energy and food prices, core inflation eased marginally to 2.7 percent in June from 2.8 percent in May. The rate matched the estimate published on June 30.

The statistical office confirmed that inflation based on the harmonized index of consumer prices also softened to 2.0 percent from 2.1 percent.

The annual increase in food prices eased to 2.0 percent from 2.8 percent in May. Services inflation was 3.3 percent compared to 3.4 percent in May. Prices of goods grew at a slower pace of 0.8 percent following a 0.9 percent rise.

On a monthly basis, the consumer price index remained flat after rising 0.1 percent in May. The HICP edged up 0.1 percent, slower than prior month's 0.2 percent increase. Final figures matched initial estimate.