German inflation picks up in line with forecasts in June

German inflation improved in line with forecasts in June but remained well below the European Central Bank’s target of just below 2%, official data showed on Tuesday.

The consumer price index, on a harmonised basis or HICP, rose 0.1% on the month and by 0.2% on the year, according to the final estimate by Destatis - which was unchanged from the previous estimate.

In May HICP inflation grew 0.4% on the month and was unchanged on the year.

Consumer prices according to national standards climbed 0.1% on the month and by 0.3% on the year, as expected by analysts and in line with the first estimate.

Energy prices continued to slide but at a slower pace to the previous month, down 6.4% in June compared to a 7.9% fall in May.

Food prices rose 0.1% in June compared to a year ago, as a jump in vegetable prices was offset by a decrease in dairy prices.