German Consumer Prices in June Rose In Line With Forecasts -- Update

--German consumer prices rose 2.3% on year by national standards, in line with forecasts

--The inflation rate has slowed slightly, from 2.5% in May

--Consumer prices rose 0.4% on month by both national standards and EU-harmonized standards

By Maria Martinez

German consumer prices rose in June, confirming preliminary data, the German statistics office Destatis said Tuesday.

Consumer prices rose 2.3% on year measured by national standards, in line with the forecasts of economists polled by The Wall Street Journal. Prices rose 2.1% on year by European Union-harmonized standards, also in line with forecasts.

After the continuous rise observed since the beginning of the year, the inflation rate has slowed slightly, Destatis said. The inflation rate was 2.5% in May, according to the latest revised data.

Consumer prices rose 0.4% on month by both national standards and EU-harmonized standards, both as forecast.

The prices of goods rose 3.1% on year and food prices rose 1.2% on year, Destatis said.

Energy-product prices were 9.4% higher than a year earlier, after a 10% rise in May.

The increasing inflation rate was partly attributable to temporary special effects, in particular the carbon charge introduced at the beginning of the year and low energy-product prices recorded a year earlier, Destatis said.

Excluding energy prices, the inflation rate would have been 1.6% in June instead of 2.3%.

Prices of services were up 1.6% in June compared with the same month a year earlier, Destatis said.

The price-collection problems caused by the pandemic in prior months were less severe in June as shop-based retail businesses and food service and accommodation establishments were largely reopened or could offer their services again, Destatis said.

Write to Maria Martinez at [e-mail]

(END) Dow Jones Newswires

07-13-21 0254ET