German inflation unexpectedly falls to 2% in June, hitting ECB’s target
Janine Kraft, store manager of the Tante Enso store in Wörlitz, Germany, sorts goods onto the shelves. Picture Alliance | Picture Alliance | Getty Images Germany’s annual inflation rate unexpectedly eased to 2% in June, bringing Europe’s largest economy in line with the European Central Bank’s target, preliminary data from statistics office Destatis showed Monday. Analysts polled by Reuters had expected a reading of 2.2% in the twelve months to June. The German print is harmonized across the euro zone, allowing for a direct comparison with other single currency states. The consumer price index had eased to 2.1% in the year to May . Elsewhere in Europe, June inflation readings showed a small rise in the harmonized rate of France and Spain, but no change in Italy. Franziska Palmas, senior Europe economist at Capital Economics, said the latest inflation data would please the ECB, which is expected to cut rates one more time in this cycle. “Overall, the figures add ...