Germany’s consumer price inflation eased to 2.3% year-over-year in June 2026, down from 2.6% in May and slightly below market expectations of 2.6%, according to preliminary data.
This is the lowest rate since February, prior to the Iran war disrupting energy supplies and driving oil prices higher.
Goods inflation fell to 1.7% from 2.2%, driven by easing energy price pressures (3.4% vs. 6.6%).
Food inflation and services inflation remained steady at 0.4% and 3.1%, respectively, while core inflation, excluding food and energy, held at 2.5%.
The EU-harmonized annual inflation rate also slowed to 2.4% from 2.7%, below expectations of 2.6% but still slightly above the ECB’s 2% target.