FRANKFURT—Consumer price inflation in Germany, Europe's largest economy, fell in June to its lowest annual rate in a year and a half, the Federal Statistics Office said Wednesday, confirming its preliminary data published June 27.
According to Destatis' second estimate, consumer prices fell by 0.1% in June from May, and rose by 1.7% on an annual basis.
In May, the German Consumer Price Index fell 0.2% monthly and increased 1.9% on an annual basis. The annual reading in June represents the lowest inflation rate since December 2010, according to Destatis.
The Consumer Price Index has remained in the comfort zone of the European Central Bank, which targets an inflation rate for the euro zone at just below 2% over the medium term.
The ECB, under increasing pressure to act in the face of weak growth euro-zone economies, cut its main refinancing rate to an unprecedented 0.75% from 1% at its rate-setting meeting last Thursday.
Destatis said consumer prices in June were significantly defined by energy and food prices.
Energy prices increased 4% on the year in June, while food prices rose 3.6% over the last 12 months, it said.
Without considering price developments in energy and food, which together account almost 20% of the expenditures of private households, the annual inflation rate would have stood at 1.1% in June, Destatis said.
By European Union standards, German consumer prices fell 0.2% on the month and increased 2% on the year, Destatis said, also confirming its preliminary reading.
wsj.com
According to Destatis' second estimate, consumer prices fell by 0.1% in June from May, and rose by 1.7% on an annual basis.
In May, the German Consumer Price Index fell 0.2% monthly and increased 1.9% on an annual basis. The annual reading in June represents the lowest inflation rate since December 2010, according to Destatis.
The Consumer Price Index has remained in the comfort zone of the European Central Bank, which targets an inflation rate for the euro zone at just below 2% over the medium term.
The ECB, under increasing pressure to act in the face of weak growth euro-zone economies, cut its main refinancing rate to an unprecedented 0.75% from 1% at its rate-setting meeting last Thursday.
Destatis said consumer prices in June were significantly defined by energy and food prices.
Energy prices increased 4% on the year in June, while food prices rose 3.6% over the last 12 months, it said.
Without considering price developments in energy and food, which together account almost 20% of the expenditures of private households, the annual inflation rate would have stood at 1.1% in June, Destatis said.
By European Union standards, German consumer prices fell 0.2% on the month and increased 2% on the year, Destatis said, also confirming its preliminary reading.
wsj.com
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