Core inflation, which excludes volatile components such as food and energy, is forecast to reach 5.8 per cent in June, up from 5.4 per cent in May.
Germany’s inflation rate is projected to reach 6.4 per cent in June 2023, up from 6.1 per cent in May 2023, as per the Federal Statistical Office.
Core inflation is expected at 5.8 per cent, up from 5.4 per cent.
Despite a 3 per cent rise in energy prices, the overall inflation increase is lower due to high energy price levels in June 2022.
The energy sector did witness a price rise, but at 3 per cent, the rate was lower than the year-on-year change in the overall index. The relatively low energy price inflation rate is attributable to a base effect arising from the high price level in June 2022. Energy prices had seen a sharp uptick in March 2022 following the Russian attack on Ukraine, as per Destatis.
Fibre2Fashion News Desk (DP)