German inflation unexpectedly eased by a tenth of a percentage point in June, likely helping to offset rising price pressures elsewhere in the euro area. Germany's national consumer price index (CPI) showed prices rising by 1.8 percent on the year, the first slowdown in inflation since December, official data showed on Thursday.
The data offered some of the first hints of price trends this month in the 13-nation eurozone. Figures from Spain and Italy showed a small acceleration in inflation.
"The price outlook is still favourable," said Commerzbank economist Matthias Rubisch, adding that years of wage restraint had help to impose limits on price pressure in Germany.
German inflation had been forecast to hold at 1.9 percent in June in a Reuters poll of economists last week.
Europe's largest economy accounts for nearly one third of the eurozone's price index. Germany's EU-harmonised index (HICP) showed inflation holding at 2.0 percent, as forecast.
The mid-range forecast of economists polled by Reuters last week was for eurozone inflation to hold steady at 1.9 percent this month, in line with European Central Bank's target.