30 June 2023
German inflation accelerated to 6.8% in June due to a surge in transport prices following a reduction in government subsidies. The rise in consumer prices in Europe’s largest economy will likely impact overall eurozone inflation. Meanwhile, Spain recorded its lowest annual price growth below the European Central Bank’s target in almost two years, with headline inflation falling to 1.6%. Despite these changes, the ECB remains concerned about underlying price pressures and is expected to maintain high interest rates.