German inflation slows more than expected in June

FRANKFURT, July 01 (AFP): Germany's inflation rate slowed more than expected in June, official data showed Monday, in welcome news for the European Central Bank following last month's first interest rate cut since 2019.

Inflation in Europe's biggest economy edged back down to 2.2 per cent from a year ago, preliminary data from federal statistics agency Destatis showed.

The decline comes after one-off factors saw consumer prices rise by 2.4 per cent in May, the first increase in six months.

Analysts surveyed by FactSet had expected the inflation figure to stay unchanged in June.

"The ups and downs continue-yet the overall trend is moving in the right direction," said KfW chief economist Fritzi Koehler-Geib.

German energy prices fell by 2.1 per cent year-on-year in June, compared with a decline of 1.1 per cent in May.