German inflation falls more than expected in June

(Sharecast News) - The annual rate of inflation slowed again in June, according to estimates from the country's Federal Statistical Office, falling to its lowest level in four months as energy price growth eased. The year-on-year change in the consumer price index decreased to 2.3% this month, down from 2.6% in May, Destatis reported on Tuesday.

This was below the consensus forecast of 2.5% and the second straight fall after hitting a two-year high of 2.9% in April. June's reading was the lowest rate seen since February.

Energy price inflation continued to drop sharply to 3.4% in June, down from 6.6% in May and 10.1% in April, as oil prices pulled back following the supply shock from the Iran war experienced in recent months.

With food inflation holding steady at 0.4%, overall goods inflation softened to 1.7% from 2.2%.

However, with services inflation unchanged at 3.1%, the overall rate of core inflation - which excludes food and energy - was also flat in June at 2.5%.