Germany’s annual inflation rate fell in June to 2%, in line with the European Central Bank’s target, preliminary data showed. The new reading for Europe’s largest economy reflected a broader easing across the continent — a positive sign for the central bank as it weighs further rate cuts this year.
“Overall, it’s safe to say that the days of high inflation are over for now,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, told Der Spiegel.
Core inflation, which excludes food and energy prices, remained elevated at 2.7%, with oil price volatility and tariffs likely to pose challenges in the long term. That uncertainty will likely see the bank keep its options open for another rate cut this year, one analyst told CNBC, with officials set to meet next in July.
— Paige Bruton
As the German inflation unexpectedly drops below pre-crisis levels, striking an unanticipated blow to hit towards ECB's target.
German inflation has unexpectedly declined, surprising analysts and putting the European Central Bank's target within reach.
A surprise drop in German inflation is a significant setback for the ECB's monetary policy efforts as it undershoots their price stability objective, raising questions about how to adjust strategies amid conflicting economic factors.
Unexpectedly, Germany's inflation has declined since last month’ latest figures suggest—strikingly meeting the ECB target one quarter early.
German inflation unexpected drop paves the way for a quicker achievement of ECB's target, raising questions over policy reaction time.
German inflation stabilization below expectations, reviving concerns around ECB monetary policy efficacy in achieving industry-wide price stability targets.
German inflation unexpectedly drops, raising questions about ECB's target achievement and future policy strategies.
