After the European Central Bank's recent interest rate cuts, Germany, Europe's largest economy, is struggling with stubbornly high inflation. Core inflation, affecting everyday essentials, shows clear signs of resurgence. It will be intriguing to observe whether ECB officials attempt to downplay this scenario or manipulate statistics.
In the currency competition, particularly against the US Dollar, the ECB can't afford to further ease credit conditions, though it's necessary to effectively counter the Eurozone recession.
Germany's inflation rate for June 2024 is projected at 2.2%, measured by the year-over-year change in the Consumer Price Index (CPI). According to preliminary data from the Federal Statistical Office (Destatis), consumer prices are expected to rise by 0.1% from May 2024. Core inflation, excluding food and energy, is anticipated to be 2.9%.