Germany's annual inflation confirmed at 6.4% in June

By Tuba Ongun

ANKARA (AA) - Germany's annual consumer inflation was confirmed at 6.4% in June, according to data released on Tuesday.

The reading increased from the 14-month low of 6.1% in May, the Federal Statistical Office (Destatis) said in a statement.

"Food remained the biggest driver of inflation. There also is a base effect due to the Federal Government’s relief measures of 2022 -- the 9-euro ticket and the fuel discount -- which pushes up the current rate of inflation," said Ruth Brand, president of Destatis.

Food prices in June surged 13.7% year-on-year after a hike of 14.9% in May while energy inflation accelerated to 3% in June from 2.6%.

Price rises were particularly pronounced for solid fuels (up 26.6%) and natural gas (up 20.8%) from a year ago in June.

Core inflation, excluding food and energy, stood at 5.8% in June, rising from 5.4% in the prior month.

On a monthly basis, Germany's consumer price index rose 0.3% in June, shifting from a 0.1% decline in May.

The largest month-on-month price increases were seen in particular for package holidays (up 6.1%) and overnight stays (up 1.7%) in June.

Prices for food and energy products fell 0.2% each compared to a month ago.