German inflation slows to 0.3% in June: data

[FRANKFURT] Inflation in Germany, Europe's biggest economy, slowed noticeably in June with consumer prices rising by just 0.3 per cent year-on-year, final data showed on Tuesday.

In May, the index had risen by 0.7 per cent on a 12-month basis, the federal statistics office Destatis said in a statement.

The reason for the slowdown was a sharp decline in energy prices, the data showed.

Using the Harmonised Index of Consumer Prices (HICP) - the yardstick used by the European Central Bank - inflation in Germany rose by just 0.1 per cent year-on-year in June, down from 0.7 per cent in May and a long way below the ECB's annual inflation target of just below two percent.

The final data confirm a preliminary estimate published at the end of last month.

AFP