Ger­man in­fla­tion picks up in June

Pakistan Observer - - ECONOMY WATCH -

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

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