Categories: Finances

German inflation bucks downward trend in June By Reuters


© Reuters. FILE PHOTO: Vegetables are offered at a greengrocer’s shop in Hamburg, June 3, 2011. REUTERS/Fabian Bimmer

BERLIN (Reuters) – German inflation rose in June, interrupting a steady decline since the start of the year.

German consumer prices, harmonised to compare with other European Union countries, increased by 6.8% on the year in June, the federal statistics office said on Tuesday, confirming preliminary data.

The year-on-year rebound in German inflation midway through the second quarter is almost exclusively due to base effects from last year’s fuel discount and a temporarily reduced rail fare.

In June 2022, in a bid to counter rising energy prices, the German government cut taxes on fuel and introduced a public transport ticket allowing travel across the country for 9 euros a month, causing inflation to dip.

Germany’s core inflation rate, which excludes volatile items such as food and energy, stood at 5.8% in June, up from 5.4% in May.

The statistics office offers a breakdown of the data for June on its website.

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