German inflation eases to 2.5% in June

German inflation eases: German inflation fell more than expected in June, resuming its downward trend.

Inflation eased to 2.5 per cent in June, preliminary data from the federal statistics office showed on Monday.

Analysts polled by Reuters had forecast a reading of 2.6 per cent, after a year-on-year increase in consumer prices of 2.8 per cent in May, based on data harmonised to compare with other European Union countries.

Core inflation, which excludes volatile food and energy prices, fell to 2.9 per cent from 3.0 per cent in May.

Economists pay close attention to German inflation data, as the euro zone's biggest economy publishes its figures before the euro zone inflation data release, expected on Tuesday.

Euro zone inflation is expected at 2.5 per cent in June, down from 2.6 per cent in the previous month, according to economists polled by Reuters.