German inflation fell in July despite a pick-up in energy prices after falling in recent months.
According to data from the German Federal Statistical Office on Tuesday, the median annual rate of CPI in July recorded 6.2%, lower than 6.4% in June, in line with market expectations and initial values.
Inflation eased after rebounding slightly last month, giving some encouragement to ECB policymakers who believe a rate-hiking cycle is starting to slow demand and ease price increases.
Energy prices continued to climb month-on-month and were 5.7 per cent higher than in July last year, mainly due to the removal of electricity surcharges a year ago, the Statistics Office said.
Food inflation continued to moderate, but remained high at 11.0% in July, affecting nearly all food categories.
Core inflation fell to 5.5%.
