Germany’s annual inflation rate fell in June to 2%, in line with the European Central Bank’s target, preliminary data showed. The new reading for Europe’s largest economy reflected a broader easing across the continent — a positive sign for the central bank as it weighs further rate cuts this year.
“Overall, it’s safe to say that the days of high inflation are over for now,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, told Der Spiegel.
Core inflation, which excludes food and energy prices, remained elevated at 2.7%, with oil price volatility and tariffs likely to pose challenges in the long term. That uncertainty will likely see the bank keep its options open for another rate cut this year, one analyst told CNBC, with officials set to meet next in July.