ECB Confronts Resurgent German Inflation, But Spain Is Below 2%
- Contrasting data show uneven picture across euro area
- Report is prelude to Friday’s numbers for the region
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Inflation re-accelerated in Germany and drastically slowed in Spain, evidence of uneven progress that’s keeping the European Central Bank focused on further monetary tightening.
The comparison effect from last year, when the Berlin government offered citizens ultra-cheap rail tickets, pushed up consumer-price growth there to 6.8% in June. In Spain, meanwhile, inflation weakened noticeably below the 2% goal targeted by policymakers.