Germany June inflation confirmed at 2.3%

Germany's final consumer-price index for June was confirmed at 2.3% year-on-year, unchanged from the preliminary estimate and down from May's 2.6%, Data showed. Market reaction: Reaction pending.

Energy inflation eased to 3.4%

Data showed energy prices rose 3.4% year-on-year in June, a slowdown from May's 6.6% and April's 10.1%, a development that accounted for much of the headline deceleration. Officials said "Energy prices continued to rise at an above-average rate as a result of the Iran war and thus remained a key driver of inflation." Food price inflation also softened, rising by 0.4% in June.

Core inflation steady at 2.5%

Core annual inflation was unchanged at 2.5% in June, the data showed, with services inflation remaining sticky at 3.1% and offsetting some of the goods disinflation. Harmonised CPI was confirmed at 2.4% year-on-year, compared with 2.7% in May.

Policy and market implications hinge on whether energy disinflation continues: if energy pressures persist in easing, rates markets could price less tightening; if geopolitical risks reverse, yields could reprice higher. Markets will watch the next monthly CPI release later in July, with attention focused on energy and services components by July 30, 2026.