Economics
German Inflation Picks Up More Than Expected on Services Costs
- Annual price growth at 0.8% in June vs. estimate of 0.6%
- State-level releases point to higher barber, restaurant prices
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Inflation in Germany accelerated more than economists expected in June, in part due to higher prices charged by services providers facing stringent hygiene measures after the lockdown.
Consumer prices rose 0.8% from a year earlier, and 0.7% from the previous month. Both figures were higher than economists’ predictions. State-level releases showed steep increases for hair and cosmetic services, as well as at restaurants and cafes -- businesses still slapped with restrictions to prevent the spread of the coronavirus.