Consumer prices in Germany grew in June 2016

Consumer prices in Germany grew in June 2016. The inflation of the European largest economy accelerated to 0.3% yoy in June 2016, which is the highest level since March, compared to 0.1% yoy in May 2016. On a monthly basis, Consumer prices in Germany grew by 0.1%, keeping the same pace from May. Recent macroeconomic data from Germany addressed mixed signals. The energy prices continued to exert downward pressure on the headline figures, falling by 6.4% yoy in June, compared with a 7.9% yoy decrease in May. The food and beverages prices increased by 0.1% yoy, buoyed by vegetable prices, which rose 4.6% yoy including potatoes, which went up by 19.1%. Also, separate wholesale price data released by the Federal Statistical Office on Tuesday showed an annual decline of 1.5%, a significantly narrower drop than that in May and April, with prices moving higher than the anticipated value of 0.6%.

In May trade surplus shrank to 21 billion EUR amid forecasts for a value of 23.5 billion EUR. The exports fell by 1.8% in seasonally adjusted data, after last month rose 0.1%.

Furthermore, industrial production fell by 1.3% mom in May. On an annual basis there was a contraction of 0.4%.

Meanwhile, the low rate of inflation may possibly induce the ECB to continue injecting monetary stimulus into the economy through its quantitative easing program, and may also administer for a policy easing in the near term if the situation worsens.

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