German inflation eases to 2.5% in June
2024.07.01 08:38
By Maria Martinez
BERLIN (Reuters) -German inflation fell more than expected in June, resuming its downward trend after two consecutive months of increases.
Inflation eased to 2.5% in June, preliminary data from the federal statistics office showed on Monday.
Analysts polled by Reuters had forecast a reading of 2.6%, after a year-on-year increase in consumer prices of 2.8% in May, based on data harmonised to compare with other European Union countries.
In March, inflation in Europe’s largest economy slackened to 2.3%, its lowest level since June 2021.
Core inflation, which excludes volatile food and energy prices, fell to 2.9% from 3.0% in May.
Economists pay close attention to German inflation data, as the euro zone’s biggest economy publishes its figures before the euro zone inflation data release, expected on Tuesday.
Euro zone inflation is expected at 2.5% in June, down from 2.6% in the previous month, according to economists polled by Reuters.
In Germany, fewer companies intend to raise their prices than in the previous month, according to a survey by the Ifo institute published on Monday.
“The inflation rate is therefore likely to continue its slow decline and fall below the 2% mark in August for the first time since March 2021,” said Timo Wollmershaeuser, head of forecasts at Ifo.
