German Inflation Eases Despite Expectations
Inflation in Germany eased to 2.0% in June, contrary to forecasts of an increase. Core inflation, which excludes food and energy prices, also declined. Import prices fell by 1.1%. This precedes the euro zone inflation release, expected to hit the European Central Bank's 2.0% target.
German inflation unexpectedly eased in June to 2.0%, according to preliminary data from the federal statistics office, defying predictions of rising price pressures in Europe's largest economy.
Despite forecasts for an increase, Germany's core inflation, excluding food and energy, dropped to 2.7%. This aligns with a decrease in import prices by 1.1% year on year in May, as reported by the statistics office.
The data precedes the euro zone's inflation release, which is anticipated to meet the 2.0% target set by the European Central Bank, following a 1.9% rate the previous month. The ECB recently cut interest rates and may pause its easing cycle.
(With inputs from agencies.)
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