Germany’s annual inflation rate remained at 2.0% in June 2025, according to provisional figures from the Federal Statistical Office (Destatis). This year-on-year reading, based on the Consumer Price Index (CPI), aligns with May’s figure, indicating stable headline price growth.
Consumer prices remained flat (0.0%) in June compared to May, which reflects steady short-term price developments.
The Harmonized Index of Consumer Prices (HICP), used for EU-wide comparison, showed:
The stable inflation environment provides the European Central Bank with clearer signals as it navigates its interest rate strategy. For German households, stable headline inflation offers some relief, although elevated core inflation indicates ongoing pressure on essential goods and services.
The U.S. dollar extended its strength after the Federal Reserve kept interest rates unchanged and signaled no immediate plans to ease, pressuring major currencies and precious metals. The euro fell to its lowest level since mid-June, while the British pound dropped toward a 2.5-month low.
According to preliminary data released on Tuesday, the Eurozone economy nearly stalled in the second quarter of 2025, expanding by just 0.1 percent. The figure marks a sharp deceleration from the 0.6 percent growth recorded in the first quarter and represents the weakest quarterly performance since late 2023.
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