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Acceleration of Core Inflation in Eurozone and Germany

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Acceleration of Core Inflation in Eurozone and Germany

Core inflation in the Eurozone has picked up once again in June, with consumer price growth excluding fuel and food reaching 5.4%. This surge in inflation can be attributed to the increase in consumer price growth in Germany, which rose to 6.8% due to the government’s provision of affordable public transport tickets last year to combat rising energy costs. This, in turn, has triggered a boost in inflation within the service sector, leading to an overall acceleration of price growth in the euro area to 5.4% in June compared to 5% in the previous month.