Germany's annual inflation rate fell to 2.3% in June, down from 2.6% in May and 2.9% in April, driven by lower oil prices and the temporary discount on fuel tax.

The Federal Statistical Office explained that energy, food, and service prices continued to impact inflation rates, with household energy costs rising 3.4% year-on-year, service prices increasing 3.1%, and food prices stabilizing at an annual growth of 0.4%.

Potential rise in July

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The core inflation rate, excluding energy and food, stood at 2.5%, while the European Central Bank continues to monitor price developments to reach its target of 2%.