German inflation accelerated to 6.8 per cent in June, pushed up from 6.3 per cent the previous month by a surge in transport prices after the government reduced its subsidy on tickets for buses and trains.
The rise in Germany offset the news of much lower inflation in Spain, which became the first major eurozone economy to record annual price growth below the European Central Bank’s 2 per cent target in almost two years.
By accelerating more than the 6.7 per cent forecast by economists in a Reuters poll, the rise in consumer prices in Europe’s largest economy will put upward pressure on overall eurozone inflation when that data is released on Friday.
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