June inflation falls across five major German states

By Aya El Sayed On Jul 1, 2024

The northwestern state of North Rhine-Westphalia, a low-lying and picturesque region containing some of Germany’s largest cities.

Inflation declined in five major German states in June, suggesting a potential drop in national inflation, according to preliminary data released on Monday.

Saxony’s inflation rate decreased to 2.8 per cent from 3.1 per cent in May; Brandenburg saw a decline to 2.6 per cent from 2.9 per cent; Baden-Wuerttemberg’s rate fell to 1.9 per cent from 2.1 per cent; and Hesse reported a reduction to 1.8 per cent from 1.9 per cent.

North Rhine-Westphalia, Germany’s most populous state, recorded a drop to 2.2 per cent in June from 2.5 per cent in May, while Bavaria’s rate remained steady at 2.7 per cent.

Economists polled by Reuters forecast Germany’s harmonised inflation rate to be 2.6 per cent in June, down from 2.8 per cent in May.

Analysts are closely monitoring the upcoming national inflation data, which will be released later today, ahead of the eurozone inflation figures expected on Tuesday. Economists predict eurozone inflation to be 2.5 per cent in June, a slight decrease from 2.6 per cent in May.

Attribution: Reuters.