Germany Offers Rare Good News for ECB With Inflation Revision

(Bloomberg) -- German inflation was revised higher in June, providing some rare positive news for the European Central Bank, which is concerned about the price outlook across the euro area.

The inflation rate was 1.5%, up from the 1.3% originally estimated, the country’s statistics office said on Thursday. Consumer-price growth was 1.3% in May.

Still, the rate remains below 2% and may not be enough to assuage worries among ECB policy makers about a sustainable increase. The pickup in June was largely due to package vacations and the timing of a public holiday. That means July could see an unwinding, putting downward pressure on inflation again.

The ECB’s next policy announcement is on July 25. Chief Economist Philip Lane has indicated that he’s in favor of acting sooner rather than later, saying that central banks must be “proactive.” Benoit Coeure, head of market operations, said loose monetary policy is needed now “more than ever.”

To contact the reporter on this story: Fergal O'Brien in Zurich at fobrien@bloomberg.net

To contact the editors responsible for this story: Craig Stirling at cstirling1@bloomberg.net, Iain Rogers, Chris Reiter

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