German annual consumer prices rose slightly in June

[June 29, 2016]  BERLIN (Reuters) - German consumer prices rose slightly in June with the annual inflation rate reaching its highest level since the beginning of the year, preliminary data showed on Wednesday, suggesting price pressures in Europe's largest economy are slowly picking up.

Discount signs are displayed in a clothing store window in Frankfurt, February 13, 2012. REUTERS/Ralph Orlowski
 

German prices, harmonized to compare with other European countries (HICP), were up 0.2 percent on the year after being unchanged in May, the Federal Statistics Office said.

The June reading was in line with a Reuters consensus forecast and it was the highest rate since January when annual inflation was 0.4 percent.

A breakdown of non-harmonized inflation data showed that energy prices remained the main drag on the headline figure, but they fell less sharply than in the previous month. The costs for food and services increased at a faster pace than in May.

(Reporting by Michael Nienaber; Editing by Joseph Nasr)

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