by Maria Martinez
BERLIN, July 28 (Reuters) – German inflation slowed again in July, more than expected, after accelerating again in June due to a base effect.
The German consumer price index, harmonized to European Union standards (HICP), rose 6.5% year on year in July, according to preliminary data from the Federal Statistical Office released on Friday.
Inflation was 6.8% in June and analysts polled by Reuters had expected a rise of 6.6% in July.
“From September, the recent decline in inflation is likely to accelerate again,” said Ralph Solveen, chief economist at Commerzbank, as the comparison with the previous year normalizes.
“However, inflation has not yet been defeated,” he added.
Non-harmonised inflation in Germany fell to 6.2% in July, from 6.4% the previous month.
Data from Germany, the euro zone’s largest economy, is released as the European Central Bank continues to search for evidence that core inflation has spiked.
Germany’s core inflation rate, which excludes volatile items such as food and energy, was 5.5% in July, down from 5.8% in June.
Food prices continued to show above-average growth, rising 11.0% year-on-year. Energy prices rose 5.7% in July from the same month a year earlier. (Report Maria Martinez, Miranda Murray and Rachel More; French version Kate Entringer)
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