Inflation in Germany rose more than expected in June, partly due to higher prices charged by services having to enforce strict hygiene standards as the country eased its coronavirus lockdown.
EU-harmonised German consumer prices rose 0.8 per cent this month compared to a year earlier, and 0.7 per cent compared to May’s figure.
Economists had been expecting a year-on-year rise of 0.6 per cent, and a monthly increase of 0.4 per cent.
State-level data showed large price increases for hair and cosmetic services as well as restaurants and cafes — industries still under restrictions designed to contain the spread of Covid-19.
The German statistics office said food price inflation remained above four per cent in June, with price growth in services rising 1.4 per cent.
The better-than-expected German inflation figures come as new data showed that economic confidence in the eurozone continued to recover in June.
Data from the European Commission showed improvements across all sectors, while overall economic sentiment rose to 75.7 points in June from 67.5 in May.
Inflation data for the entire eurozone area is due to be released tomorrow.