German inflation unexpectedly accelerates in July

Price pressures in Germany surprised to the upside in July, with the annual rate of inflation unexpectedly rising from June's multi-year low, according to data from the Federal Statistical Office.

Destatis reported that the annual change in the consumer price index picked up to 2.3%, surprising economists who had pencilled in no change from 2.2% the month before.

June's reading had matched figures in March and April for the lowest rate of headline CPI inflation since May 2021.

According to the report, food inflation picked up to 1.3% from 1.1% the month before, while services inflation held steady at 3.9% and energy prices deflation eased to -1.7% from -2.1%.

Germany's harmonised index for consumer prices – the more closely followed measure of inflation that is harmonised across all EU members for better comparisons – rose to 2.6% from 2.5%, ahead of the 2.4% consensus forecast.