Germany’s inflation rate slowed more than expected in June, official data showed Monday, in welcome news for the European Central Bank following last month’s first interest rate cut since 2019.
The decline comes after one-off factors saw consumer prices rise by 2.4 percent in May, the first increase in six months.“The ups and downs continue — yet the overall trend is moving in the right direction,” said KfW chief economist Fritzi Koehler-Geib. Food inflation accelerated by 1.1 percent in June, while prices for services rose by 3.9 percent, unchanged from May.
The rate cut lowered the ECB’s closely-watched deposit rate from a record four percent to 3.75 percent.
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