German inflation eased in June, preliminary data from the Federal Statistics Office showed on Monday, despite earlier forecasts that price pressures would rise slightly in Europe's largest economy.
Germany's annual inflation rate eased to 2.0%. Analysts polled by Reuters had previously forecast inflation adjusted to EU standards would rise to 2.2% from the previous month.
Germany's core inflation rate, which excludes volatile food and energy prices, also fell to 2.7% in June from 2.8% in the previous month.
The data comes ahead of the euro zone inflation rate release on Tuesday. Inflation in the currency bloc is expected to rise to 2.0% in June, in line with the European Central Bank's (ECB) target, up from 1.9% in the previous month, according to a Reuters poll.
Meanwhile, German import prices fell 1.1% year-on-year in May, the statistics office said. The ECB previously cut interest rates in early June, but signaled that they may be taking a pause in their year-long easing cycle.
