German inflation picks up in June
BERLIN—Germany’s annual inflation rate picked up for the second consecutive month in June, as the drag from energy prices eased, preliminary calculations of German federal statistics office Destatis showed recently. The consumer price index (CPI) rose by 0.3 per cent in June from the same month of last year, following an increase of 0.1 per cent in May.
The drop of energy prices was still the main negative effect pulling down inflation, but this has let up in recent months. In June, energy prices fell by 6.4 percent year on year, compared to an annual drop of 7.9 per cent in May. Measured with the harmonized index of consumer prices (HICP), which is calculated to compare with other European countries, German annual inflation also climbed to 0.2 per cent from zero in May.
It was encouraging for the European Central Bank that inflation in Europe’s biggest economy moved closer to its target of “below, but close to, 2.0 percent.” The Frankfurtbased central bank was making efforts to lift inflation in the eurozone by injecting fresh money into the market and keeping interest rates at record low levels.—Agencies