German CPI inflation defies forecasts for a fall in June

Inflation in Germany defied forecasts that it would retreat in June.

The headline consumer price index rose by 0.2% month-on-month, according to a preliminary estimate from the Federal Office of Statistics.

In turn, the year-on-year rate of CPI was pushed up from 1.5% in May to 1.6% for June (consensus: 1.4%).

Energy prices were flat versus the year-ago month, after a 2.0% increase in May. Likewise, goods inflation slipped from 1.8% to 1.5%.

However, the above were more than offset by an acceleration in food price inflation from 2.4% to 2.8%, while services prices were ahead by 1.7%, up from 1.2% in the month before.

On a harmonised basis, CPI increased by 0.2% on the month and 1.5% year-on-year (consensus: 1.3%).