German inflation shows very few signs of any knock-on effects from higher energy prices so far, ING's Carsten Brzeski says in a note. EU-harmonized price growth fell to 2.7% in June from 2.4% in May. What's even more important, he says, is that compared with last month, prices dropped again, the first time since the summer of 2024 that prices dropped for two months in a row. Inflation should accelerate again next month, given the end of the German government's tax rebate on fuel. However, there is still little evidence of any self-reinforcing inflationary spiral. "After last night, the sales of Germany's national football team merchandise could be another unexpected disinflationary driver in July," he adds. (edward.frankl@wsj.com)
Dow Jones Newswires
German Inflation Shows Few Signs of Pass-Through of Energy Prices — Market Talk
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German inflation shows very few signs of any knock-on effects from higher energy prices so far, ING's Carsten Brzeski says in a note. EU-harmonized price growth fell to 2.7% in June from 2.4% in May. What's even more important, he says, is that compared with last month, prices dropped again, the fi…