Inflation slows in four German states in June, pointing to national decrease

By Maria Martinez

BERLIN, ‌June 30 (Reuters) - ​Inflation ​fell in four key German states in June, preliminary data showed on Tuesday, suggesting Germany's ‌national inflation rate could ease this month.

• In ⁠Bavaria, the inflation rate fell to 2.5% in June from ‌2.6% in May. In ‌North Rhine-Westphalia and in Baden-Wuerttemberg it decreased to 2.1% from 2.4% and in Lower Saxony it fell ​to 2.5% from 2.7%.

• The war in Iran had pushed up energy and raw material prices ⁠in previous months and the German government now expects inflation to accelerate ​to 2.7% this year and 2.8% in 2027.

• Economists polled by Reuters are forecasting ​a harmonised national inflation rate ‌in Germany - the euro zone's largest economy - of 2.5% in June, down from 2.7% ⁠in the previous month. National figures will be released later on Tuesday.

• The German data comes ahead of the ⁠euro zone inflation release on Wednesday. Inflation in the bloc ​is expected to come in at 3.0% in June, down from 3.2% in the previous month, according to economists polled by ‌Reuters.

• The European Central Bank raised interest rates for the first time in ‌nearly three years in June in the hope of ⁠curbing inflation before a ‌surge in energy ​costs spreads more broadly across the euro zone economy.

(Reporting by Maria Martinez; Editing by Alexandra ‌Hudson)

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