Consumer price inflation in Germany eased to 2.3% year-on-year in June, down from 2.6% in May, according to data released by the Federal Statistical Office (Destatis).
The slowdown marks a continued retreat in price pressures within the eurozone's largest economy, bringing headline inflation closer to the European Central Bank's 2% target.
The deceleration was primarily driven by a sharp decline in oil prices, which reduced costs for transport and heating.
Additionally, widespread discounts at fuel stations and retailers contributed to the softer print, offsetting persistent increases in other categories.
This combination of lower energy costs and promotional pricing helped dampen the overall inflation rate.
For markets, the data reinforces the narrative that inflationary pressures are receding across the euro area.