Consumer prices in Germany continued to increase in June but at a slower pace, official data showed on Monday, signaling that Europe's biggest economy was still under pressures of low inflation.
Annual inflation rate measured by consumer price index (CPI) in Germany slowed to 0.3 percent in June from 0.7 percent in May, said German federal statistical office Destatis in a statement.
Weak energy prices were behind the unexpected drop. In June, energy prices fell by 5.9 percent year-on-year. In May, energy prices declined yearly by 5 percent.
When measured by the harmonized index of consumer prices (HICP), European Central Bank's (ECB) yardstick, German inflation rate in May also fell to 0.1 percent from 0.7 percent in May.
It was far below the ECB's medium-term maintenance target of "below, but close to 2 percent". Analysts said the reading suggested that Europe's biggest economy was still under pressures of low inflation and ECB's quantitative easing has yet had desired effects in the euro zone.
The inflation rate of the common currency area was scheduled to be released on Tuesday, and was expected to also decrease in June.