The German government finally succeeded in fighting inflation. The local authorities slashed rising prices as well provided support to the residents suffered from high inflation.
Although inflation remains the key issue, the German government responded rapidly and managed to keep it under control. They promptly adopted the package to support the residents hit hard by high prices. Notably, the relief measures included a reduction in excise duties on fuel and discounts on public transport. Consequently, prices fell from 8.7% in May to 8.2% in June in annual terms.
Despite upbeat data of the largest economy in the EU, the European Central Bank plans to raise its key rate in July for the first time in 10 years. It is currently at zero. Moreover, inflationary pressures on population and businesses remain high in other EU member states. For example, Spain reported a record annual inflation rate of 10%.
