German inflation cools to 2.3% in June as fuel discounts and lower oil prices ease price pressures

The sharper-than-expected deceleration in Germany’s headline rate reinforces the disinflationary trend across the eurozone, with France also posting a notable drop to 1.8%.

By Handelsavisen Newsroom · Automated 2026-06-30 12:10 UTC · 1 min read

Consumer price inflation in Germany slowed more than anticipated in June, falling to 2.3% year-on-year from 2.6% in May.

The deceleration was primarily driven by a sharp decline in oil prices and the continued impact of fuel discounts, which significantly reduced energy costs for households and businesses.

4% in May, according to data from the national statistics office Insee.

The data, reported by German media outlets including Welt, marks a meaningful step down in price pressures within the eurozone’s largest economy.

The drop in headline inflation suggests that the combination of lower global energy costs and domestic policy measures, such as the fuel discount scheme, is effectively transmitting savings to consumers.

This development aligns with broader disinflationary trends across Europe.

In France, consumer price inflation also decelerated notably, falling to 1.8% year-on-year in June from 2.4% in May, according to data from the national statistics office Insee.