Germany's annual inflation eases to 2% in June, less than expected

Energy prices down 3.5% year-on-year in June, driving inflation down, Destatis says

By Mucahithan Avcioglu

ISTANBUL (AA) - The consumer prices index (CPI) in Germany was at 2% in June on a yearly basis, below market expectations, according to preliminary estimates released on Monday.

The figure was down from 2.1% in May, its lowest level since last October, the Federal Statistical Office (Destatis) data showed.

The CPI figures were at 2.1% in April and 2.2% in March, down from a 14-month high of 2.6% in December.

The markets had expected the figure to rise 2.2% on an annual basis in June.

A significant fall in energy prices drove the overall easing in annual inflation. The price of energy products saw a decline of 3.5% in June year-on-year.

Meanwhile, above-average increases in services and food prices continued to drive up inflation with increases of 3.3% and 2%, respectively.

The inflation rate excluding food and energy, often referred to as core inflation, was at 2.7% in June on an annual basis, also down from 2.8% in May.

Compared to May, consumer prices were stable in June on a monthly basis, easing from 0.1% in May, also below market forecasts.

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