Germany: Inflation slows in June from the prior month
Latest reading: Harmonized consumer prices rose 2.4% in annual terms in June, following a 2.7% increase in the prior month.
Relative to the prior month’s figures, there were milder price pressures for food and non-alcoholic beverages (+0.8% in annual terms vs +1.0% in May), transportation (+4.8% vs +6.2% in May), housing and utilities (+0.7% vs +0.8% in May) and recreation (+1.9% vs +2.3% in May). In contrast, price pressures were higher for restaurants and hotels in June (+3.1% vs +2.6% in May).
Meanwhile, consumer prices rose 2.3% in June, following a 2.6% rise in the previous month.
Finally, harmonized consumer prices fell 0.21% in June in month-on-month terms, following a 0.12% decline in the prior month.
Panelist insight: Commenting on the outlook, ING’s Carsten Brzeski stated:
“Looking ahead, as today marks the last day of the government’s tax rebate on fuel, inflation should accelerate again next month, even if global energy prices have come down. Beyond the fiscal stimulus reversal, we still expect some knock-on effects from higher energy prices on transportation costs, food prices and other industrial products over the coming months. On top of that, the current heatwave in Europe clearly bears an additional inflationary risk.”