German inflation cools to 2.3% as fuel discounts weigh on prices

Consumer price inflation in Germany slowed to 2.3% year-on-year in June, according to data reported by Handelsblatt.

The deceleration was primarily driven by a sharp decline in oil prices and widespread discounts at fuel stations, which exerted downward pressure on the headline rate.

4% in May, marking the first time the headline rate has fallen below the 2% threshold in recent months.

The softer inflation print aligns with a broader easing of price pressures across the Eurozone.

In France, consumer price inflation decelerated to 1.8% year-on-year in June, down from 2.4% in May, marking the first time the headline rate has fallen below the 2% threshold in recent months.

This cross-border disinflationary trend suggests that energy cost relief is permeating the wider European economy.

Financial markets have already begun to price in the cooling inflation dynamics.