German inflation falls more than expected in June

The year-on-year change in the consumer price index decreased to 2.3% this month, down from 2.6% in May, Destatis reported on Tuesday.

This was below the consensus forecast of 2.5% and the second straight fall after hitting a two-year high of 2.9% in April. June's reading was the lowest rate seen since February.

Energy price inflation continued to drop sharply to 3.4% in June, down from 6.6% in May and 10.1% in April, as oil prices pulled back following the supply shock from the Iran war experienced in recent months.

With food inflation holding steady at 0.4%, overall goods inflation softened to 1.7% from 2.2%.

However, with services inflation unchanged at 3.1%, the overall rate of core inflation – which excludes food and energy – was also flat in June at 2.5%.