Key Highlights

• Headline inflation eased to 2.3% year-over-year in June, down from 2.6% in May and below the 2.6% market consensus.

• Goods inflation fell to 1.7% from 2.2%, driven by energy inflation slowing to 3.4% from 6.6%.

• Core inflation, excluding food and energy, held steady at 2.5%, while food and services inflation remained unchanged at 0.4% and 3.1% respectively.

• The EU-harmonized inflation rate slowed to 2.4% from 2.7%, below the 2.6% forecast but still above the European Central Bank's 2% target.

Germany's annual consumer price inflation slowed to 2.3% in June 2026, down from 2.6% in May and below market expectations of 2.6%, according to preliminary data from the Federal Statistical Office, extending the retreat from April's two-year high of 2.9%.

Preliminary figures showed the third consecutive monthly decline in Germany's inflation rate following April's peak, the highest reading in over two years. The June print came in below the median forecast among economists, who had expected the rate to hold closer to May's level.

Energy Prices Drive the Disinflation

Energy prices remained the primary driver of the broader slowdown, with energy inflation easing to 3.4% from 6.6% in May. The moderation in goods inflation to 1.7% from 2.2% reflected this energy-driven decline, as services and food inflation held at their prior month's levels of 3.1% and 0.4% respectively.

Core Inflation Holds Steady Above Target

Core inflation, viewed by policymakers as a cleaner read on underlying price pressure, remained unchanged at 2.5%, indicating that the broader disinflation has yet to extend meaningfully into categories excluding food and energy.

The EU-harmonized measure, used for cross-country comparison within the eurozone, slowed to 2.4% from 2.7%, undershooting the 2.6% consensus forecast. Despite the decline, both the national and harmonized readings remain above the European Central Bank's 2% inflation target.