German inflation jumps to 1.8% in June

Annual inflation in Germany jumped to a higher-than-forecast 1.8 per cent in June as food and energy costs rose, the statistics office said. Analysts had expected the data would show the cost of living in Europe’s biggest economy climbing to 1.7 per cent this month from 1.5 in May. The European Central Bank aims to keep annual inflation in the 17-member eurozone at below but close to 2 per cent, German Press Agency dpa reported. Analysts expect data to be released by European Union on Monday to show annual inflation in the currency bloc creeping up to 1.5 per cent in June from 1.4 per cent last month. German inflation has been spiking higher in recent months. Annual consumer prices stood at 1.2 per cent in April. The national statistics office said while food prices have surged 5.4 per cent this month, energy costs gained 3 per cent.