FX.co ★ German Inflation Unexpectedly Slows in June

Germany’s consumer price inflation slowed to 2.3% year-on-year in June 2026, down from 2.6% in May and slightly below market expectations of 2.6%, according to preliminary data. This marks the lowest rate since February, before the Iran war disrupted energy supplies and pushed oil prices higher. Goods inflation declined to 1.7% from 2.2%, largely reflecting easing energy price pressures (3.4% vs. 6.6%). Food and services inflation were unchanged at 0.4% and 3.1%, respectively, while core inflation, which excludes food and energy, remained steady at 2.5%. The EU-harmonized inflation rate also eased, dropping to 2.4% from 2.7%, undershooting forecasts of 2.6% but staying slightly above the ECB’s 2% target.