Overview

• German retail turnover in May fell by 1.2% month-on-month, marking the steepest contraction since October 2022.
• Real retail sales dropped 1.6% in May, with non-food outlets down 2.2% and internet and mail-order retailers off 1.4%.
• Despite the monthly slump, nominal revenues in May were 2.8% higher than a year earlier and real sales rose 1.6% over May 2024.
• Headline inflation eased to 2.0% year-on-year in June—the lowest rate in more than six months—as energy prices declined by 3.5%.
• Core inflation excluding food and energy cooled to 2.7% in June even as food prices climbed 2.0%, underscoring persistent service-sector price pressures.