ING Netherlands: German inflation shows almost no signs of energy price transmission

The EU’s harmonized price increase in June fell from 2.4% in May to 2.7%. He said that more importantly, compared to the previous month, prices have declined again, marking the first time since the summer of 2024 that prices have fallen for two consecutive months. Given the end of the German government’s fuel tax relief, inflation is expected to accelerate again next month. However, there is still almost no evidence of a self-reinforcing inflation spiral. “After last night, the sales of German national football team merchandise may be another unexpected driver for inflation to slow down in July,” he added.