Germany's inflation rate projected to hit 6.4% in June 2023: Destatis

30 Jun '23

1 min read

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Germany's inflation rate is projected to reach 6.4 per cent in June 2023, up from 6.1 per cent in May 2023, as per the Federal Statistical Office.
Core inflation is expected at 5.8 per cent, up from 5.4 per cent.
Despite a 3 per cent rise in energy prices, the overall inflation increase is lower due to high energy price levels in June 2022.

The inflation rate in Germany is projected to hit 6.4 per cent in June 2023, marking an increase from the 6.1 per cent recorded in May 2023, according to data from the Federal Statistical Office (Destatis). Measured as the change in the consumer price index (CPI) compared to the same month a year earlier, consumer prices are expected to see a 0.3 per cent increase from May 2023.

Core inflation, which excludes volatile components such as food and energy, is forecast to reach 5.8 per cent in June, up from 5.4 per cent in May.

The energy sector did witness a price rise, but at 3 per cent, the rate was lower than the year-on-year change in the overall index. The relatively low energy price inflation rate is attributable to a base effect arising from the high price level in June 2022. Energy prices had seen a sharp uptick in March 2022 following the Russian attack on Ukraine, as per Destatis.

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