By Ed Frankl
Inflation in Germany fell more than expected in June, a signal that inflationary pressures are easing more sustainably, likely reassuring the European Central Bank after it cut interest rates for the first time in five years.
Consumer prices were 2.2% higher than in June last year, down from the 2.4% in May, German statistics office Destatis said Monday. This was lower than the consensus of 2.3% from economists polled by The Wall Street Journal.
June's lower inflation reading was driven by energy prices that declined at a faster rate than in May, though food inflation was higher in June than in the prior month.
Core inflation, which strips out more volatile energy and food prices, was 2.9% in June, down slightly from 3.0% in May.
The ECB cut its key interest rate for the first time since 2019 early in June, to 3.75% from 4.0%.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
07-01-24 0829ET