Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

German inflation slows but remains above ECB target in June

EconomyJun 29, 2021 13:41
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A salesman waits for customers on a farmer's market in the northern German town of Hamburg May 26, 2011. German health authorities on May 25, 2011 have warned consumers to be careful with raw salad vegetables, after reporting about 140 cases and at least

BERLIN (Reuters) - Germany's annual consumer price inflation eased in June, but remained above the European Central Bank's target of close to but below 2%, the Federal Statistics Office said on Tuesday.

Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 2.1% in June, down from 2.4% in May.

The June reading was in line with a Reuters forecast.

The national consumer price index (CPI) slowed to 2.3% in June from 2.5% in May.

Germany's preliminary inflation data does not include a harmonized figure for core inflation which strips out more volatile index components such as energy and food costs.

But a breakdown of the non-harmonized data showed that energy and food inflation rose a little less strongly in June while prices for rents and goods accelerated at the same pace.

"There are increasing signs that underlying price pressure is picking up slightly," Commerzbank (DE:CBKG) economist Marco Wagner said, adding that clothing, overnight stays and restaurant visits had become noticeably more expensive.

The German central bank earlier this month lifted its inflation forecast to 2.6% this year, which would be the highest since 2008.

The Bundesbank has played down the significance of the surge, blaming it mainly on energy prices and tax effects. Without those, it said, inflation would stand at just 1%, in line with last year and well below 2019's level.

The sudden surge in prices, which could see inflation touch 4% in the second half of 2021, might affect perceptions after a long period of low inflation and impact consumer behaviour.

Citing the temporary nature of price rises, both the central bank and government expect inflation to ease again next year despite an expected strong economic recovery.

German inflation slows but remains above ECB target in June
 

Related Articles

UK PM Johnson: COP26 outcome is in the balance
UK PM Johnson: COP26 outcome is in the balance By Reuters - Oct 27, 2021 1

LONDON (Reuters) - The outcome of the COP26 United Nations climate conference is in the balance, British Prime Minister Boris Johnson said on Wednesday, describing the summit as...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email