XINHUA – Price pressure in Germany has eased again after a brief uptick, with the inflation rate dropping to 2.2 per cent in June, according to preliminary data from the Federal Statistical Office (Destatis) on Monday.
The slowdown was mainly driven by a decline in energy prices, which fell by 2.1 per cent year-on-year. Food prices rose by 1.1 per cent, while services experienced a sharper increase of 3.9 per cent, higher than the overall inflation rate.
As fewer German companies reportedly plan to raise prices, particularly in industry and consumer-related sectors, the ifo Institute for Economic Research expects inflation to continue falling in the coming months, predicting that the rate will dip below two per cent in August for the first time in over three years.
Following years of high price levels and rising interest rates, the European Central Bank (ECB) cut its key interest rates by 25 basis points last month. Further cuts have been ruled out for the time being.
Despite significant progress, Europe’s fight against inflation is not over, ECB President Christine Lagarde said recently on social media platform X.
