Consumer price data released by the eastern German states of Saxony and Brandenburg today confirmed the picture of a slight rise in German inflation in June.
The two states reported increases in the price of food, heating oil and package holidays, the latter rise being typical at the start of the summer.
Saxony reported a 0.2 per cent rise in price month-on-month and a 0.6 per cent increase year-on-year. The state had raised deflation worries last month by reporting a month-on-month drop in prices and year-on-year inflation of just 0.2 per cent.
Brandenburg said its consumer prices rose 0.1 per cent month-on-month and were up 0.8 per cent year-on-year. In May, Brandenburg's consumer price index fell 0.2 per cent month-on-month and rose by 0.6 per cent year-on-year.
The two states were the second and third of six German states to release figures that serve as a basis for preliminary pan-German inflation data for June.
The Bundesbank said in its monthly report for June, published yesterday, there were no signs Germany was experiencing a Japan-style, broad-based drop in prices, but warned stagnating growth made it vulnerable to economic shocks.