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3d ago

German Inflation Falls to 2.0% in June, Lowest Since October 2024

Service-price rises remain high at 3.3 percent even as weaker energy and food inflation push overall growth to a new low.

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Die Inflation hat sich im Juni leicht abgeschwächt. "Neben den weiterhin fallenden Energiepreisen ging insbesondere der Preisauftrieb bei Nahrungsmitteln zurück", erklärte Ruth Brand, Präsidentin des Statistischen Bundesamtes, am Donnerstag.

Overview

  • Statistisches Bundesamt confirmed that consumer prices in June rose 2.0 percent year-on-year, marking the weakest rate since October 2024.
  • Energy costs declined by 3.5 percent over 12 months as fuel, heating oil and electricity prices eased, helping to dampen headline inflation.
  • Food-price inflation cooled to 2.0 percent in June, bringing grocery-bill increases in line with the overall rate for the first time this year.
  • Service-sector prices climbed 3.3 percent year-on-year, driven by higher wages in areas such as insurance, travel and personal care.
  • ING chief economist Carsten Brzeski expects headline inflation to fall below 2 percent in coming months if oil prices remain stable following the Israel-Iran conflict.