Key facts
- German inflation was 2.4% in June, below the forecasted 2.5%.
- German retail sales rose 1.1% month-over-month in May, defying expectations.
- Year-over-year German retail sales increased by 1.6% in May.
- Monthly German retail sales unexpectedly declined by 1.6% in May.
- The mixed German retail data did not significantly impact the EUR/USD exchange rate.
German inflation stood at 2.4% in June, according to preliminary data from the national statistics office, falling short of the 2.5% forecast by analysts polled by Reuters. This comes as German retail sales data for May presented a mixed picture. While monthly sales unexpectedly rose by 1.1%, defying predictions of no change, a separate monthly figure indicated a 1.6% decline. Year-over-year, retail sales increased by 1.6% in May, a slowdown from April's revised 2.9% gain. Despite the conflicting retail figures, the EUR/USD exchange rate held steady above 1.1700, supported by broader US Dollar weakness. The mixed economic signals are unlikely to prompt an immediate policy shift from the European Central Bank, which continues to monitor incoming data.