Key facts
- German inflation fell to 2.4% in June.
- May German retail sales showed a 1.1% monthly increase.
- May German retail sales also showed a 1.6% monthly decline.
- French inflation slowed to 1.8% year-on-year in June.
- French inflation was forecast to be 2.1% in June.
- German unemployment decreased by 1,000 in June.
- German unemployment was forecast to increase by 7,000 in June.
- The German seasonally adjusted jobless rate was 6.3% in June.
- 2.984 million people were unemployed in Germany in June.
German inflation eased to 2.4% in June, a figure that fell below economists' expectations. This slowdown in price growth was accompanied by mixed signals from retail sales in May. Official data indicated a 1.1% monthly increase in retail sales, yet a separate report suggested a 1.6% monthly decline, pointing to uncertainty in consumer spending patterns.
In France, consumer prices rose by 1.8% year-on-year in June. This represents a notable slowdown from May's inflation rate of 2.4% and was also lower than the 2.1% anticipated by market analysts. The primary driver for this deceleration was a reduction in the pace of energy price increases, with inflation in services and food sectors also showing signs of easing.
Further economic indicators from Germany revealed an unexpected decrease in unemployment for June. The number of jobless individuals fell by 1,000, contrary to economists' predictions of a 7,000 increase. This development kept the seasonally adjusted unemployment rate stable at 6.3%, with the total number of unemployed people recorded at 2.984 million.