Central Banks

German Inflation Slows as Optimism in Economic Rebound Wanes

  • Consumer prices rose 2.5% from year ago in June, as expected
  • Sentiment among consumers, businesses has weakened of late

German consumer prices rose 2.5% from a year earlier in June.

Photographer: Krisztian Bocsi/Bloomberg
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German inflation slowed after two months of accelerating as the country’s economic recovery showed signs of stalling.

Consumer prices rose 2.5% from a year earlier in June — down from 2.8% in May and in line with a Bloomberg survey of analysts. Energy costs continued to decline, while goods eased and services, under particular scrutiny now, were unchanged at 3.9%.