German June Inflation Rate Confirmed at 0.3%; Prices Up 0.1% on Month
German inflation picked up pace in June, with consumer prices rising 0.3% from a year earlier, final figures from the government's statistics agency showed.
The inflation rate accelerated from a pace of 0.1% in May. From May to June, prices rose 0.1%, according to the data, which confirmed preliminary figures out on June 29.
Falling energy prices continued to have a dampening effect on price growth, said the Federal Statistical Office, which put price growth excluding energy at 1.1%. The price of goods, including energy and food, fell 0.8%. However, the price of services rose by 1.4% year-on-year, pulled higher by the cost of rent, social facilities, transportation and insurance.
The price growth supports central bank expectations that German - and therefore - eurozone inflation will pick up in the course of the year after low, or falling prices, in the early months. It may also buttress central bankers' "wait-and-see" approach on introducing new monetary stimuli after March rate cuts, though the fallout from the U.K.'s June 23 vote to leave the European Union risks throwing previous calculations into disarray.
Preliminary June inflation figures for the whole of the eurozone recently showed that headline inflation moved back above the zero line to 0.1%, after prices dropped by an annual 0.1% in May.
Separate wholesale price data released by the Federal Statistical Office on Tuesday showed an annual decline of 1.5%,a significantly narrower drop than in May and April, with prices up an above-forecast 0.6% on the month.
The 10-year German government bond yield was recently up 1 basis points at minus 0.16%.
The Dax closed on Monday up 2.12% at 9,833.41.