Inflation down in five German states, pointing to national decline

Inflation fell in five important German states in June, preliminary data showed on Monday, suggesting that national inflation could decline this month.

In Saxony, the inflation rate fell in June to 2.8% from 3.1% in the previous month, in Brandenburg it fell to 2.6% from 2.9%, in Baden-Wuerttemberg it fell to 1.9% from 2.1%, and in Hesse it fell to 1.8% from 1.9%.

The inflation rate in north Rhine-Westphalia, Germany's most populous state, fell to 2.2% in June from 2.5% in May.

In Bavaria, the inflation rate remained unchanged at 2.7% in June.

Economists polled by Reuters forecast Germany's harmonised inflation rate at 2.6% in June, down from 2.8% in May.

Economists will pay close attention to national inflation data later on Monday, as Germany publishes its figures before the eurozone inflation data release, expected on Tuesday.

Eurozone inflation is expected at 2.5% in June, down from 2.6% in the previous month, according to economists polled by Reuters.