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.

Markets shifted toward risk-on sentiment as easing geopolitical tensions and uncertainty around Federal Reserve policy pressured the U.S. dollar. EUR/USD climbed toward 1.18, reaching multi-month highs, while sterling also advanced to a seven-week peak.
US-Iran Talks End Without BreakthroughDiplomatic negotiations between the United States and Iran ended without an agreement after more than 21 hours of discussions in Pakistan, marking another setback in efforts to ease pressure surrounding Iran’s nuclear program and regional role.
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