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.
Global markets remained cautious as escalating U.S.–Iran tensions and disruptions in the Strait of Hormuz continued to fuel inflation fears and energy market volatility.
Global markets leaned toward a cautiously optimistic tone as hopes for progress in U.S.–Iran ceasefire negotiations supported risk appetite and pressured the dollar.
Dollar Weakness Persists (11 – 15 May)Global markets moved through another volatile week as investors balanced resilient US economic data against ongoing geopolitical uncertainty in the Middle East. The US dollar weakened further, falling below 98 and reaching a ten-week low despite stronger labor market figures. At the same time, fragile ceasefire conditions between the United States and Iran continued to shape energy markets, while tensions around the Strait of Hormuz remained a key source of inflation risk and market caution.
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