German inflation beats forecasts with June rise

GERMAN inflation rose more than expected in June, interrupting a steady decline since the start of the year and suggesting a bumpy road ahead.

German consumer prices, harmonised to compare with other European Union countries, rose by a more-than-anticipated 6.8 per cent on the year in June, preliminary data from the German statistics office showed on Thursday (Jun 29).

By comparison, inflation fell sharply in Spain to 1.6 per cent and to 6.7 per cent in Italy. . French inflation data is due on Friday.

Non-harmonised consumer prices rose 6.4 per cent in June year on year, following a 6.1 per cent rise in the previous month.

Compared to May, prices increased by 0.4 per cent in EU-harmonised terms, the office added.

Analysts had expected harmonised data to increase by 0.3 per cent on the previous month and grow by 6.7 per cent on an annual basis. REUTERS