German inflation ticks up to 0.9% in June

Consumer prices in Germany grew by 0.9 per cent year on year in June, up on the previous month, but still lagging far behind targeted inflation, according to government statistics released on Monday.

The Federal Statistical Office (Destatis) reported the inflation rate based on provisional data.

In May, annual inflation in Europe’s biggest economy slumped to 0.6 per cent, the lowest rate in almost four years, as the coronavirus pandemic rattled key industries and drove up unemployment.

The inflation rate based on the previous month stood at 0.6 per cent in June, Destatis said.

The government agency warned that inflation could once again fall in the coming months, as a result of a planned reduction in value-added tax from July 1, if retailers pass the savings on to consumers.

The European Central Bank’s aims to keep inflation in the eurozone at just below 2 per cent.

Source: dpa