German consumer prices rose 0.3pc in June from May and were up 1.0pc year-on-year, according to preliminary figures released today by the Federal Statistics Office. Economists had forecast a 0.1pc rise on the month, and a 0.8pc rise on the year. The results are based on figures from six federal states and will go some way towards easing fears of deflation in the eurozone's largest economy. The office said the harmonised index of consumer prices (HICP) for Germany in June was up 1.0pc year-on-year and was up 0.3pc month-on-month. The final result will be published mid-July, the statistics office said.
Earlier today, a senior International Monetary Fund (IMF) official played down a recent IMF report that sparked fears about deflation in Germany. "In Germany the study pointed to considerable risks of mild deflation over the next year, as a result of persistent weakness in domestic demand," IMF Deputy Managing Director Eduardo Aninat told an event on Tuesday at the Munich-based Ifo institute. //www.fxcentre.com/