Germany’s inflation rate decreased to 2% in June 2025, marking the first time it hit the ECB’s target in nearly a year. Consumer prices increased by 2% year-over-year, lower than economists’ expectations.
Luis de Guindos, an ECB Vice President, noted uncertainties in Europe’s economic outlook, especially regarding EU-US trade negotiations. Despite mixed signals, Ireland’s Central Bank Governor sees inflation stabilizing around the target.
Increased government spending on defense and infrastructure is expected to improve economic growth prospects in Germany, contrasting with steady inflation rates in Italy.
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